EURUSD Technical Analysis : The EUR/USD currency pair ended the previous week at approximately $1.13039, showing signs of weakness as it trades below several key moving average crossover levels depicted on the chart. This positioning suggests a loss of bullish momentum and increasing downward pressure on the pair. The technical indicators further support this view, particularly the MACD (Moving Average Convergence Divergence), which is currently signaling a bearish trend. The MACD line remains below the signal line, and the histogram continues to reflect negative momentum, strengthening the case for a potential short position in the near term.
Given this bearish setup, traders may consider initiating sell positions during the early hours of the upcoming trading week—specifically during the Asian session. A suitable entry point could be identified around the $1.12863 level. This price area represents a minor support that, if broken, could open the path for further declines.
In terms of downside targets, the $1.12631 region appears to be a logical short-term support level. It can serve as the initial take-profit zone for traders entering short positions near $1.12863. This level has historically shown some buying interest, and price action may pause or reverse here depending on broader market sentiment and macroeconomic developments.
Trading Strategy :
To manage risk effectively, it is advisable to set a stop-loss around the $1.12631 level as well.
especially for more aggressive traders who are comfortable with tighter risk margins. Alternatively, conservative traders may opt for a wider stop just above key moving averages or recent swing highs.
In conclusion, the technical landscape of the EUR/USD pair points toward a bearish bias for the start of the week. With prices trading below key moving averages and negative momentum confirmed by the MACD, selling opportunities appear favorable from $1.12863, with the potential for a move down to $1.12631. As always, traders should remain attentive to economic news and global developments that may influence price action throughout the session.
EURUSD Technical Analysis: On the Other Hand
On the other hand, if the $1.13303 buy zone is broken, the euro price may head towards $1.13474.
EURUSD Technical Analysis: Resistance and Support Levels
- Second Resistance: 1.13147
- First Resistance: 1.13106
- Pivot Level: 1.13056
- Second Support: 1.13012
- First Support: 1.12963
