European session, Date: 07/24/2024
introduction
The euro witnessed a noticeable decline against the US dollar, as this downward wave began since the end of last week. As the US dollar index rose, major currencies fell against it, including the euro. Despite technical signs indicating a possible continuation of the uptrend, the Euro continued to decline. In this technical analysis, we will take a look at the factors influencing the Euro’s current movement and future expectations.
Overview
The euro is currently trading at $1.0832, a level that reflects continued selling pressure on it. Although the “bullish hidden divergence” appeared, which occurs when the price records higher lows while the technical indicator records lower lows, indicating the possibility of a continuation of the upward trend, this signal was not enough to turn the tide. In addition, the euro is trading below most of the moving average crossovers, which reinforces the negative outlook in the short term. The MACD indicator also indicates strength in the negative trend, which increases the possibility of a continuation of the downside.
Trading strategies based on Buy/Sell levels
In case of buying | in case of selling | EURUSD |
1.0846 | 1.0825 | Entry point |
First resistance: 1.0971 | First support: 1.0800 | Target Point 1 (TP1) |
Second resistance: 1.0900 | Second support: 1.0785 | Target Point 2 (TP2) |
1.0825 | 1.0846 | Stop Loss (SL) |
Conclusion
Under the current circumstances, it seems that the euro will remain under selling pressure against the US dollar, especially with the continued strength of the dollar index. Despite technical signals that may indicate a possible reversal, fundamental and technical factors support a continuation of the decline. Therefore, traders are advised to monitor key technical levels and upcoming economic reports to get a clearer picture about the future direction of the Euro.