EURUSD Technical Analysis: The EUR/USD pair closed at $1.09424, trading below several key moving averages, as illustrated in the chart. This positioning suggests a bearish bias, with the pair not maintaining momentum above the major moving averages. Additionally, the MACD indicator shows a weak positive trend, indicating a slight upward movement but without strong bullish strength.
In light of this technical setup, there is potential for a short-term upward move, particularly during the Asian session. A possible buying opportunity could arise if the price rises to $1.09669, where traders might look to enter the market. The target for this trade would be around $1.09994, offering a reasonable risk-to-reward ratio based on the current market conditions.
However, it’s important to manage risk properly, given the overall market structure. A suitable stop-loss level would be at $1.09003 to protect against potential downside risks. This would limit losses in case the price moves against the trade, as the overall market sentiment still leans toward bearishness.
Traders should remain cautious, as the MACD’s weak positive trend and the pair’s position below key moving averages suggest that any upward movement could be short-lived, and the overall trend could reverse. As always, close monitoring of the price action is advised to adapt to any changes in momentum or market sentiment throughout the trading session.
In summary, while the technical indicators offer some signs of potential upside, the cautious approach would be to wait for a rise to $1.09669 before buying, targeting $1.09994, while maintaining a stop-loss at $1.09003 to mitigate risks in this uncertain market environment.
EURUSD Technical Analysis: On the Other Hand
On the other hand, if the $1.09003 sell zone is broken, the euro price may head towards $1.08750.
EURUSD Technical Analysis: Resistance and Support Levels
- Second Resistance: 1.09827
- First Resistance: 1.09628
- Pivot Level: 1.09454
- Second Support: 1.09251
- First Support: 1.09080
