{"id":3152,"date":"2021-02-02T08:38:00","date_gmt":"2021-02-02T08:38:00","guid":{"rendered":"https:\/\/youtrading.com\/en\/?p=3152"},"modified":"2021-02-02T10:47:54","modified_gmt":"2021-02-02T10:47:54","slug":"eurusd-technical-analysis-us-dollar-index-holds-the-key","status":"publish","type":"post","link":"https:\/\/youtrading.com\/en\/eurusd-technical-analysis-us-dollar-index-holds-the-key\/","title":{"rendered":"EURUSD Technical Analysis &#8211; US dollar index holds the key"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"3152\" class=\"elementor elementor-3152\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<div class=\"elementor-inner\">\n\t\t\t\t<div class=\"elementor-section-wrap\">\n\t\t\t\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-6ccdfff elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"6ccdfff\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-9651a6d\" data-id=\"9651a6d\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-d770cc5 elementor-widget elementor-widget-text-editor\" data-id=\"d770cc5\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\">\n\t\t\t\t<p>The euro currency bounced back against the US dollar last week, after coming under pressure towards the 1.2060 level as the European Central Bank actively tried to talk the single currency lower. However, selling pressures have returned this week as the greenback is threatening to breakout to the upside after weeks of sideways trading action.<\/p><p>Uncertainty over the overall direction of the US dollar currency caused traders to pause selling the <a href=\"http:\/\/bit.ly\/2YAQOVh\" target=\"_blank\" rel=\"noopener\">EURUSD<\/a> pair in recent weeks, although with stimulus talks gaining traction the buck is starting to look bid again.<\/p><p>A major directional breakout in the <a href=\"https:\/\/bit.ly\/37m9dMU\" target=\"_blank\" rel=\"noopener\">US dollar index<\/a> could bamboozle a new short-term trend in the EURUSD pair. For all intents and purposes, an eventually upside breakout in the index looks more likely than not.<\/p><p>The current state of play for the EURUSD pair is once of uncertainty. The technical show a clear path lower, however, until the US dollar index starts to definitively break to the upside then two-way trading action is assured.<\/p><p>Another factor at play is Italy. Former ECB President Mario Draghi is being lined-up for the top job in Italian politics. If Draghi does succeed, then the euro currency is likely to experience a relief rally of sorts.<\/p><p>This is naturally making traders cautious, especially with mixed economic data coming from the US economy. Going forward a breakout in the US dollar index is almost certainly required to forge a clear path ahead for the EURUSD pair.<\/p><p>Something else to pay attention too is the US stock market. The ongoing <a href=\"https:\/\/bit.ly\/3aAQFuu\" target=\"_blank\" rel=\"noopener\">Wall Street<\/a> versus Main Street battle could cause hedge funds to close existing winning position, hence a flight into the greenback could be perceived as likely.<\/p><p>During the upcoming week, if risk-aversion persists due to the ongoing squeeze in heavily shorted hedge fund stocks, then a down move in US stocks could be a major bullish catalyst for the US dollar currency. This could propel the EURUSD pair lower, and in effect take cause a massive breakout in the US dollar index.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/p><p><strong>EURUSD Short-Term Technical Analysis<\/strong><\/p><p>According to the four-hour time frame a massive head and shoulders pattern has been shaping-up over recent weeks. Sellers have been unable to break under the neckline of the patter, around the 1.2060 level.<\/p><p>Traders will likely ramp up short positions towards the EURUSD pair this week if the 1.2060 level is broken with conviction, placing the 1.1900 and 1.1800 levels as potential downside targets.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-6a5fdda elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"6a5fdda\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-d6806e5\" data-id=\"d6806e5\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-52e673d elementor-widget elementor-widget-image\" data-id=\"52e673d\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-image\">\n\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"624\" height=\"300\" src=\"https:\/\/youtrading.com\/en\/wp-content\/uploads\/2021\/02\/EURUSD-4H.png\" class=\"attachment-large size-large wp-image-3169\" alt=\"\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-7e10dc5 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"7e10dc5\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-bc5e28a\" data-id=\"bc5e28a\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-671b514 elementor-widget elementor-widget-text-editor\" data-id=\"671b514\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\">\n\t\t\t\t<p>Source By ActivTrader.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-7529489 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"7529489\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-1828624\" data-id=\"1828624\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-d6493d7 elementor-widget elementor-widget-text-editor\" data-id=\"d6493d7\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\">\n\t\t\t\t<p><strong>EURUSD Medium-Term Technical Analysis<\/strong><\/p><p>Looking at the daily time chart, a major long-term trendline breakout is underway while the price trades above the 1.2120 level. The battle around this area has been intense over recent days, meaning it is an area of intense technical interest.<\/p><p>Gains above this area could provoke a rebound towards the 1.2200 area, while persistence weakness should cement weakness towards the 1.1900 area once again.<\/p><p>Sellers will have the upper hand if the daily candle closes beneath the 1.2060 level, placing the 1.1800 and 1.1600 levels as the major medium-term targets. If the 1.1600 level is broken then the overall medium-term trend will turn bearish.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-b171376 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"b171376\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-9de9459\" data-id=\"9de9459\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-5f605c9 elementor-widget elementor-widget-image\" data-id=\"5f605c9\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-image\">\n\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"624\" height=\"300\" src=\"https:\/\/youtrading.com\/en\/wp-content\/uploads\/2021\/02\/EURUSD-1D.png\" class=\"attachment-large size-large wp-image-3170\" alt=\"\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-4a59f96 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"4a59f96\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-8a1a41a\" data-id=\"8a1a41a\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-114b3fa elementor-widget elementor-widget-text-editor\" data-id=\"114b3fa\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\">\n\t\t\t\t<p>Source By ActivTrader.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>The euro currency bounced back against the US dollar last week, after coming under pressure towards the 1.2060 level as the European Central Bank actively tried to talk the single currency lower. However, selling pressures have returned this week as the greenback is threatening to breakout to the upside after weeks of sideways trading action. [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":3167,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5,9],"tags":[54,18,40,167,191],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v17.6 (Yoast SEO v20.11) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>EURUSD Technical Analysis - US dollar index holds the key - Youtrading UK<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/youtrading.com\/en\/eurusd-technical-analysis-us-dollar-index-holds-the-key\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"EURUSD Technical Analysis - US dollar index holds the key\" \/>\n<meta property=\"og:description\" content=\"The euro currency bounced back against the US dollar last week, after coming under pressure towards the 1.2060 level as the European Central Bank actively tried to talk the single currency lower. However, selling pressures have returned this week as the greenback is threatening to breakout to the upside after weeks of sideways trading action.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/youtrading.com\/en\/eurusd-technical-analysis-us-dollar-index-holds-the-key\/\" \/>\n<meta property=\"og:site_name\" content=\"Youtrading UK\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/YouTradingEnglish\/\" \/>\n<meta property=\"article:published_time\" content=\"2021-02-02T08:38:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-02-02T10:47:54+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/youtrading.com\/en\/wp-content\/uploads\/2021\/02\/GettyImages-465427884.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"536\" \/>\n\t<meta property=\"og:image:height\" content=\"287\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Nathan Batchelor\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"EURUSD Technical Analysis - US dollar index holds the key\" \/>\n<meta name=\"twitter:description\" content=\"The euro currency bounced back against the US dollar last week, after coming under pressure towards the 1.2060 level as the European Central Bank actively tried to talk the single currency lower. However, selling pressures have returned this week as the greenback is threatening to breakout to the upside after weeks of sideways trading action.\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Nathan Batchelor\" \/>\n\t<meta name=\"twitter:label2\" content=\"Estimated reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/youtrading.com\/en\/eurusd-technical-analysis-us-dollar-index-holds-the-key\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/youtrading.com\/en\/eurusd-technical-analysis-us-dollar-index-holds-the-key\/\"},\"author\":{\"name\":\"Nathan Batchelor\",\"@id\":\"https:\/\/youtrading.com\/en\/#\/schema\/person\/88ce8e6688d6c690a83e6cbeee2eccab\"},\"headline\":\"EURUSD Technical Analysis &#8211; US dollar index holds the key\",\"datePublished\":\"2021-02-02T08:38:00+00:00\",\"dateModified\":\"2021-02-02T10:47:54+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/youtrading.com\/en\/eurusd-technical-analysis-us-dollar-index-holds-the-key\/\"},\"wordCount\":550,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/youtrading.com\/en\/#organization\"},\"keywords\":[\"ECB\",\"EURUSD\",\"US DOLLAR INDEX\",\"US Economy\",\"Wall Street\"],\"articleSection\":[\"Forex\",\"Insights\"],\"inLanguage\":\"en-GB\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/youtrading.com\/en\/eurusd-technical-analysis-us-dollar-index-holds-the-key\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/youtrading.com\/en\/eurusd-technical-analysis-us-dollar-index-holds-the-key\/\",\"url\":\"https:\/\/youtrading.com\/en\/eurusd-technical-analysis-us-dollar-index-holds-the-key\/\",\"name\":\"EURUSD Technical Analysis - US dollar index holds the key - Youtrading UK\",\"isPartOf\":{\"@id\":\"https:\/\/youtrading.com\/en\/#website\"},\"datePublished\":\"2021-02-02T08:38:00+00:00\",\"dateModified\":\"2021-02-02T10:47:54+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/youtrading.com\/en\/eurusd-technical-analysis-us-dollar-index-holds-the-key\/#breadcrumb\"},\"inLanguage\":\"en-GB\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/youtrading.com\/en\/eurusd-technical-analysis-us-dollar-index-holds-the-key\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/youtrading.com\/en\/eurusd-technical-analysis-us-dollar-index-holds-the-key\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/youtrading.com\/en\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"EURUSD Technical Analysis &#8211; US dollar index holds the key\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/youtrading.com\/en\/#website\",\"url\":\"https:\/\/youtrading.com\/en\/\",\"name\":\"Youtrading UK\",\"description\":\"Leaders in Trader Training\",\"publisher\":{\"@id\":\"https:\/\/youtrading.com\/en\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/youtrading.com\/en\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-GB\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/youtrading.com\/en\/#organization\",\"name\":\"YouTrading\",\"url\":\"https:\/\/youtrading.com\/en\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-GB\",\"@id\":\"https:\/\/youtrading.com\/en\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/youtrading.com\/en\/wp-content\/uploads\/2020\/12\/Logo-Youtrading-2020_preto.svg\",\"contentUrl\":\"https:\/\/youtrading.com\/en\/wp-content\/uploads\/2020\/12\/Logo-Youtrading-2020_preto.svg\",\"width\":2531,\"height\":570,\"caption\":\"YouTrading\"},\"image\":{\"@id\":\"https:\/\/youtrading.com\/en\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/www.facebook.com\/YouTradingEnglish\/\",\"https:\/\/www.instagram.com\/youtrading_english\/\",\"https:\/\/www.youtube.com\/channel\/UCc22BNolZpSd33lXc8utUvg\"]},{\"@type\":\"Person\",\"@id\":\"https:\/\/youtrading.com\/en\/#\/schema\/person\/88ce8e6688d6c690a83e6cbeee2eccab\",\"name\":\"Nathan Batchelor\",\"description\":\"Nathan Bathelor brings a professional trading background and highly renowned technical analysis with 15 years of experience. He holds a degree in Business and Finance and has an extensive background providing research for prop houses, and fund managers. 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