The EUR/USD pair has witnessed a significant bearish movement during the recent sessions, affected by mixed economic data from the Eurozone and the United States. Growing expectations regarding monetary tightening by the Federal Reserve, versus less clear signals from the European Central Bank, are putting additional pressure on the European currency. This divergence in monetary policies is clearly reflected in the pair’s movement, leading to the dominance of selling momentum.
The Impact of Technical Indicators
Looking at the daily chart, the price is trading below the main moving averages, reflecting the strength of the bearish trend in the short and medium term. Specifically:
- 50-day moving average: currently forming a dynamic resistance at levels close to 1.0550.
- 200-day moving average: remains far from current levels, reinforcing the overall negative outlook.
In addition, the MACD indicator is showing clear negative signals, as it settles below the zero line with an increasing gap between the signal line and the indicator line, reflecting the continuation of the selling momentum without any signs of an imminent.
Trading strategies based on Buy/Sell levels
| In case of buying | in case of selling | EURUSD |
| 1.0425 | 1.0385 | Entry point |
| First resistance: 1.0455 | First support: 1.10355 | Target Point 1 (TP1) |
| Second resistance: 1.0485 | Second support: 1.0325 | Target Point 2 (TP2) |
| 1.0385 | 1.0425 | Stop Loss (SL) |
With trading continuing below key support levels and the negative momentum confirmed by technical indicators, the overall trend for the EUR/USD pair remains bearish. Any rebound attempts may face strong resistance.
Investors are advised to carefully monitor economic developments and key support and resistance levels, as these factors will play a crucial role in determining the pair’s future direction.
