European session, Date: 08/01/2024
In today’s EURUSD Technical Analysis, we delve into the continued decline of the Euro Dollar pair following the recent US interest rate decision. The Federal Reserve’s decision to stabilize interest rates has resulted in significant selling pressure on the pair, currently trading at $1.0781. This analysis provides an overview of the factors contributing to this downward trend and the technical signals indicating sustained selling momentum.
EURUSD Technical Analysis today: Overview
After the announcement, the pair faced strong selling pressure, dropping to $1.0781. This decline reflects the Euro’s weakness against the US dollar, showing bearish market control. The pair is trading below the moving averages, reinforcing the negative price outlook and indicating a lack of technical support to halt the decline.
The moving averages highlight a strong downward trend, with the price below these key levels. This technical setup suggests a continued downtrend, especially with no strong reversal signals nearby.
The MACD indicator also shows a strong downtrend, signaling strong selling momentum. It displays bearish divergence, continuing in the negative zone, which supports the likelihood of further short-term decline.
Fundamental factors:
The US interest rate decision to keep interest rates unchanged, although expected, did not provide the necessary support for the euro. Instead, the value of the US dollar rose as a safe haven amid global economic uncertainty. In addition, the European economy continues to face significant challenges, which increases pressure on the single currency.
Trading strategies based on Buy/Sell levels
| In case of buying | in case of selling | EURUSD |
| 1.0786 | 1.0773 | Entry point |
| First resistance: 1.0806 | First support: 1.0753 | Target Point 1 (TP1) |
| Second resistance: 1.0836 | Second support: 1.0723 | Target Point 2 (TP2) |
| 1.0773 | 1.0786 | Stop Loss (SL) |
The decision to keep US interest rates unchanged, though expected, did not boost the Euro. Instead, the US dollar strengthened as a safe haven amid global economic uncertainty. Additionally, the European economy faces significant challenges, adding pressure on the single currency.
