Technical Analysis for the Euro Dollar: The EUR/USD chart on the H1 timeframe shows significant price action over the past few days. We are currently witnessing selling pressure that has pushed the price to test key support levels after a period of uptrend. We will analyze the overall trend, support and resistance levels, and momentum indicators to identify potential future scenarios.
Technical Analysis for the Euro Dollar: Price Action Overview:
- The overall trend over the past week has been bullish, with the pair recording new highs before beginning a gradual decline.
- The price is currently trading near the 1.0842 level after breaking an important support level, indicating the possibility of continued decline if buyers do not appear at current levels.
- We are seeing bearish moving averages crossing, reinforcing the scenario of further decline.
Important Support and Resistance Levels:
Nearby Resistance: 1.0860 – a key resistance level that represents a previous reversal point.
Secondary Resistance: 1.0890 – a strong resistance level that has seen several tests during the uptrend.
First Support: 1.0820 – A broken support level that could turn into resistance if the decline continues.
Second Support: 1.0790 – A key support level that could be a target for sellers if downward pressure persists.
Technical Indicator Analysis:
1️⃣ Moving Averages:
The fast-moving averages (EMA) have started to curve downward, reflecting the beginning of bearish momentum.
The slow-moving average (red) is still bullish but could witness a bearish crossover soon.
2️⃣ MACD Indicator:
The indicator is showing a bearish crossover with the main line (orange) moving below the signal line.
The histogram bars have narrowed, indicating increased selling pressure.
Possible Scenarios:
Positive (Bullish) Scenario:
- If the price manages to stabilize above 1.0820 and rebound upwards, we may witness an attempt to test resistance at 1.0860 and then 1.0890.
Negative (Bearish) Scenario:
- Continued trading below 1.0820 will lead to further declines towards 1.0790 and then lower levels if selling pressure increases.
Trading strategies based on Buy/Sell levels
| In case of buying | in case of selling | EURUSD |
| 1.08600 | 1.08204 | Entry point |
| First resistance: 1.08900 | First support: 1.07905 | Target Point 1 (TP1) |
| Second resistance: 1.09200 | Second support: 1.07605 | Target Point 2 (TP2) |
| 1.08204 | 1.08600 | Stop Loss (SL) |
The EUR/USD pair is currently showing signs of weakening upward momentum after breaking key support levels, reinforcing the possibility of a continued downward correction in the short term. The crossover of the moving averages and the MACD’s decline towards negative territory support this scenario, especially with the price stabilizing below 1.0820. If the selling pressure continues, we may see an extension of the decline.
