EUR/USD Analysis. The EUR/USD pair is currently trading at 1.1136 after a sharp break of 1.1185 and a negative stability below the moving averages. Selling momentum appears strong after this morning’s downward acceleration.
EUR/USD Analysis: Technical Overview
The intraday trend is bearish as long as the price remains below 1.1158, and the momentum indicators (MACD and Stochastic) support continued selling pressure.
Technical Indicators Analysis:
MACD: Deepening its presence in the negative zone with the negative bars continuing to widen, reflecting strong selling momentum.
Stochastic: Remaining in a downtrend below 30, indicating continued selling pressure despite some signs of approaching oversold conditions.
Moving Averages: The price is below all major moving averages, supporting a bearish technical bias.
Expected Scenarios for the EUR/USD
Positive Scenario:
- A break above 1.1116 will push the pair towards the next support level at 1.1100. If the pressure continues, 1.1086 could be the next target during the session.
Negative Scenario:
- If the pair succeeds in breaking 1.1158 and holds above it, we may witness an upward correction towards 1.1185 and then 1.1207, with the overall trend remaining negative unless 1.1225 is surpassed.
Trading strategies based on Buy/Sell levels
| In case of buying | in case of selling | EURUSD |
| 1.11503 | 1.11167 | Entry point |
| First resistance: 1.11888 | First support: 1.10866 | Target Point 1 (TP1) |
| Second resistance: 1.12108 | Second support: 1.10566 | Target Point 2 (TP2) |
| 1.11167 | 1.11503 | Stop Loss (SL) |
The EUR/USD pair is steadily moving within a clear downward channel on the H1 timeframe, influenced by weak demand for the European currency coupled with rising US bond yields. Continuing below 1.1158 maintains the negative momentum, while a break of 1.1116 is a potential gateway to further declines in the coming hours. Awaiting US data releases should be closely monitored, as they will play a crucial role in determining the short-term price direction.
Impactful Economic News:
- United States:
Monthly Producer Price Index (PPI) – expected to provide direct indications of inflationary pressures ahead of the CPI data.
Weekly Jobless Claims – If lower than expected, it could support the dollar’s strength.
- Eurozone:
No major data releases today, making the pair more sensitive to US dollar movements and safe-haven flows.
