EURUSD Technical Analysis: The EUR/USD currency pair concluded the previous week on a strong note, closing at $1.13410, positioning itself above most of the key moving average crossovers visible on the chart. This upward movement reflects bullish sentiment in the market, supported further by technical indicators. Notably, the MACD (Moving Average Convergence Divergence) is signaling continued upward momentum, suggesting that buyers remain in control.
Given this positive technical setup, a buy position is recommended during the Asian session at the start of this trading week. The pair has room to climb, with an initial resistance target around $1.13858, a level that may serve as a short-term ceiling. If the bullish trend persists, we can expect the pair to push further towards the next key resistance at $1.14444, offering a favorable risk-to-reward ratio for long positions.
To manage downside risk, it is advisable to place a stop-loss order around the $1.12392 level. This level is safely below recent support zones and moving average indicators, providing sufficient room for minor market fluctuations without prematurely closing the trade.
Overall, the technical landscape favors the bulls. As long as EUR/USD maintains its position above major moving averages and the MACD continues to trend positively, upside potential remains viable. Traders should monitor price action closely during the Asian session for confirmation signals before entering. Caution is still warranted, especially in response to unexpected macroeconomic events or news that could influence market sentiment.
EURUSD Technical Analysis: On the Other Hand
On the other hand, if the $1.12392 sell zone is broken, the euro price may head towards $1.11969.
EURUSD Technical Analysis: Resistance and Support Levels
- Second Resistance: 1.13671
- First Resistance: 1.13554
- Pivot Level: 1.13325
- Second Support: 1.13205
- First Support: 1.12976
