EURUSD Technical Analysis: The EUR/USD pair is trading in a bearish trend today, as the pair witnessed fluctuations in a narrow range during the trading session, with the highest price recorded at 1.0569 and the lowest price at 1.0492. Currently, the pair is trading at the level of 1.0539, reflecting the continued selling pressure on the euro against the US dollar.
EURUSD Technical Analysis: Technical Analysis
- Moving Averages:
The pair shows continuous trading below the main moving averages (SMA) in the short and long term. The pair is currently trading below the 50-day moving average, reflecting the dominance of the downtrend. At the same time, the price continues to remain below the 200-day moving average, which reinforces the negative picture and increases the possibility of continued selling pressure.
- MACD Indicator:
The MACD indicator indicates a clear negative trend, as the main line is trading below the signal line, reflecting the weakness of the upward momentum and supporting the possibility of continuing the downtrend. The decline in the index values to the negative zone also reinforces expectations of pressure on the pair.
Expectations:
- If the pair continues to trade below the main moving averages, the most likely scenario is the continuation of the downtrend. The pair may witness testing the nearby support levels at 1.0492, which represents the lowest price recorded today. If this level is broken, the downtrend may extend towards lower support levels that may be around 1.0450.
- On the other hand, any bullish rebound needs a clear breach of the 1.0569 level first, then retesting the moving averages as resistance levels, which may be evidence of an attempt to regain the upward momentum, but this scenario remains unlikely under the current market conditions.
Trading strategies based on Buy/Sell levels
| EURUSD | In case of buying | in case of selling |
| Entry point | 1.0571 | 1.0514 |
| Target Point 1 (TP1) | First resistance: 1.0597 | First support: 1.0579 |
| Target Point 2 (TP2) | Second resistance: 1.0610 | Second support: 1.0559 |
| Stop Loss (SL) | 1.0514 | 1.0571 |
Based on the current technical analysis, the overall trend of the EUR/USD pair remains bearish as the price is trading below the major moving averages, in addition to negative signals from the MACD indicator. Therefore, it is advisable to direct trading strategies towards exploiting the bearish movements in case the pair continues to trade below the current resistance levels.
