European session, Date: 07/31/2024
introduction
EURUSD Technical Analysis. Despite limited attempts to rise, the EURUSD pair continues to trade in a bearish direction, reflecting the sellers’ control over the market. Today, the pair is trading at the level of $1.0818, indicating the continuation of the downward pressure amidst a general weakness in the price action. In this comprehensive technical analysis, we will discuss the factors affecting the pair, and review our future expectations based on technical indicators and fundamental data.
Overview
Over the past week, the EURUSD pair has witnessed significant price fluctuations, as the price tried to rise but faced strong resistance, which led to the continuation of the downward trend. The technical analysis of the pair shows that it is currently trading at $1.0818, a level that reflects a decline compared to last week. The analysis shows clear weakness in most of the moving average intersections, as the pair is trading below or close to them. This weakness in the moving averages indicates that the upward momentum is weak, and that buyers were unable to push the price above these important levels.
In addition, the MACD indicator indicates weakness in the uptrend, which reinforces the possibility of a continuation of the downtrend. The MACD is showing a bearish crossover or approaching it, indicating that sellers are gaining strength compared to buyers. These technical signals suggest that the current upside attempts may be limited, and that the market may witness further declines if strong support does not appear.
Fundamental factors:
Furthermore, fundamental factors influence the movement of the EURUSD pair. Geopolitical tensions, monetary policies of the European Central Bank and the Federal Reserve, and key economic data can play a major role in determining the direction of the pair. Recent economic data from the Eurozone indicate a slowdown in economic growth, which increases pressure on the single currency. In contrast, the US dollar continues to benefit from its role as a safe haven amid global economic uncertainty.
Trading strategies based on Buy/Sell levels
| In case of buying | in case of selling | EURUSD |
| 1.0825 | 1.0807 | Entry point |
| First resistance: 1.0850 | First support: 1.0782 | Target Point 1 (TP1) |
| Second resistance: 1.0875 | Second support: 1.0750 | Target Point 2 (TP2) |
| 1.0807 | 1.0825 | Stop Loss (SL) |
Conclusion
Given these technical and fundamental factors, the EURUSD pair is expected to continue to face significant challenges in its attempts to rise. With the selling pressure continuing and the pair trading below most of the moving averages, the downtrend remains dominant in the short term. Traders are advised to monitor key technical levels such as the support at $1.0800 and the resistance at $1.0850. Attention should also be paid to any changes in economic data or political statements that may affect the market direction. Making informed trading decisions based on these factors will be crucial to achieving the best possible returns in this volatile period.
