EURUSD Technical Analysis
The EUR/USD currency pair concluded the previous week on a bearish note, closing at $1.11486. Price action remains under pressure, as it continues to trade below several key moving average crossovers on the chart, indicating underlying weakness in the pair’s short-term trend. The inability to sustain gains above these moving averages suggests a lack of bullish momentum and reinforces the bearish technical outlook.
Further supporting this view is the MACD (Moving Average Convergence Divergence) indicator, which currently signals a bearish trend. The MACD line has crossed below the signal line, and histogram bars remain in negative territory, pointing to increasing downside momentum.
In light of these technical signals, traders might consider a short position at the beginning of the upcoming trading week, particularly during the Asian session. A potential entry point lies near $1.11199, where traders could look for a continuation of the downward movement. If bearish pressure persists, the next key support zone is projected around $1.10870.
which may serve as a realistic profit-taking level.
To manage risk effectively, it is advisable to set a stop-loss near $1.11875. This level sits just above recent resistance and the confluence of moving averages, making it a logical threshold to limit losses if the market reverses unexpectedly.
Overall, the current market structure, combined with bearish technical indicators, supports a cautious short-selling strategy on EUR/USD. Traders should continue to monitor price action around key support and resistance areas.
as well as updates in macroeconomic fundamentals that could influence euro and dollar strength throughout the week.
EURUSD Technical Analysis: On the other hand,
if the $1.11875 buy zone is broken, the euro price may head towards $1.12118.
Resistance and Support Levels
- Second Resistance: 1.11560
- First Resistance: 1.11524
- Pivot Level: 1.11452
- Second Support: 1.11416
- First Support: 1.11340
