EURUSD Technical Analysis: The EUR/USD currency pair closed at $1.08142, finishing the week below several key moving averages on the chart, indicating a bearish outlook. This technical setup suggests that the pair may continue its downward movement in the short term. The MACD (Moving Average Convergence Divergence) indicator further supports this view, signaling a bearish trend with its current positioning. Given these technical indicators, there appears to be a strong case for a sell opportunity in the upcoming trading sessions.
For traders looking to take advantage of this potential decline, focusing on the Asian trading session may be a good strategy. A decline to the level of $1.07977 could present a prime entry point for short positions. From there, the price has the potential to move towards a target area around $1.07757, offering a reasonable reward-to-risk ratio for those anticipating further downside.
EURUSD Technical Analysis: Trading Strategy
As always, risk management should be a priority when executing such trades. A stop-loss level at $1.08382 is recommended to cap potential losses in case the market moves against the trade. This level is strategically placed just above recent resistance, which could help mitigate the risk of a sudden reversal in the market.
Overall, the current technical setup for EUR/USD favors a bearish scenario, with a possible short trade if the price shows a decline during the early hours of the Asian session. Traders should monitor the market closely for a move toward $1.07977, with the expectation that the pair could reach the $1.07757 target, while using a stop-loss at $1.08382 to control risk.
EURUSD Technical Analysis: On the Other Hand
On the other hand, if the $1.08382 buy zone is broken, the euro price may head towards $1.08544.
EURUSD Technical Analysis: Resistance and Support Levels
- Second Resistance: 1.08249
- First Resistance: 1.08204
- Pivot Level: 1.08150
- Second Support: 1.08118
- First Support: 1.08065
