European session, Date: 08/06/2024
The EURUSD pair witnessed a noticeable improvement at the beginning of the first week of August 2024, as the price rose after a period of stagnation and slow price movements. The pair opened the week at $1.0920, reaching its highest level so far at $1.1007. However, there are still signs of weak purchasing power, raising questions about the sustainability of this rise. In this technical analysis, we will take a look at the factors that affected the pair’s movement and our expectations for the coming days.
Technical analysis of the EURUSD pair : Overview
The EUR/USD pair started this week with a noticeable rise after a period of stagnation, as it opened at $1.0920 and achieved its highest level so far at $1.1007. This improvement in performance reflects bulls’ attempts to push the price higher. However, the price is currently trading at $1.0934, below the moving averages, indicating that the bullish momentum has not gained enough strength.
The moving averages are showing a bearish arrangement, as the price is trading below them, indicating that selling pressures are continuing. This technical signal reinforces the possibility of pullbacks in the coming days, especially if the price cannot stay above the current levels.
In addition, the MACD indicator is showing weak purchasing power. Despite the recent rise, the indicator is still showing negative divergence, indicating that the bullish momentum may be limited and that buyers may have difficulty maintaining the momentum.
Fundamental factors:
Economic and political factors affect the movement of the EUR/USD pair. Recently, the European economy has seen some improvement, but growth is still weak compared to other economies. On the other hand, the US dollar remains strong due to the monetary and economic policies that support the currency.
Trading strategies based on Buy/Sell levels
| In case of buying | in case of selling | EURUSD |
| 1.0949 | 1.0913 | Entry point |
| First resistance: 1.0990 | First support: 1.0880 | Target Point 1 (TP1) |
| Second resistance: 1.1020 | Second support: 1.0949 | Target Point 2 (TP2) |
| 1.0913 | 1.0949 | Stop Loss (SL) |
Despite a positive start to the week, the EUR/USD pair faces significant challenges in maintaining its upward momentum. Traders are advised to monitor key technical levels, such as support at $1.0900 and resistance at $1.1000, for signals on the pair’s future direction. Any important economic news or data that may impact the markets should also be taken into account. Making informed trading decisions based on technical and fundamental analysis will be key to success in this volatile period.
