EUR/USD Analysis Summary Today
- Overall Trend: Bearish.
- Support Levels for EUR/USD Today: 1.1550 – 1.1470 – 1.1400
- Resistance Levels for EUR/USD Today: 1.1680 – 1.1740 – 1.1800
EUR/USD Trading Signals:
- Buy EUR/USD from the support level of 1.1530 with a target of 1.1800 and a stop-loss at 1.1470.
- Sell EUR/USD from the resistance level of 1.1700 with a target of 1.1500 and a stop-loss at 1.1780.
Technical Analysis of EUR/USD Today:
Driven by weak sentiment, the EUR/USD exchange rate is currently trading below a short-term bearish trend line. The price is attempting to recover from its recent low around 1.1584; however, the currency pair appears to be approaching a nearby resistance level that is capping gains. A pullback to this resistance zone is possible as buyers attempt to push the price higher, and the Fibonacci retracement tool indicates areas where sellers might be waiting to defend their positions. The 38.2% Fibonacci retracement level is at 1.1650, which coincides with a significant previous level that could act as a ceiling.
Amidst free live trading recommendations, the 50% Fibonacci retracement level is at 1.1640, while a larger retracement could reach the 61.8% Fibonacci level at 1.1655. This level coincides with the descending trendline resistance and could represent a crucial turning point for the current downtrend.
Technically, a break above this level would indicate sufficient bullish momentum to invalidate the bearish pattern. Regarding moving average readings, the 100-day simple moving average remains below the 200-day simple moving average, indicating that the stronger trend is downward, or that further selling is more likely than a reversal. The EUR/USD pair is currently trading below two dynamic inflection points, reinforcing the bearish bias.
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Technically, the Stochastic oscillator is also moving upwards from oversold territory, suggesting that buyers are attempting to return. The indicator has room to rise before reaching overbought territory, so the EUR/USD pair may continue to move higher as long as the upward pressure persists. The Relative Strength Index (RSI) is showing significant gains and still has a long way to go higher, meaning that the correction may gain momentum before sellers regain control.
Generally, if any of the Fibonacci levels hold as resistance, the EUR/USD pair may resume its decline towards the bottom of the channel or reach new lows. A break below the psychological support level of 1.1500 will remain crucial for bears. On the other hand, a strong break above the trend line and the 61.8% Fibonacci retracement level would confirm the start of a trend reversal.
Trading Tips:
The EUR/USD downward trend may continue, offering better buying opportunities for the currency pair at lower prices than current levels. However, it is essential to avoid taking unnecessary risks, regardless of how strong the trading opportunities may seem.
What happened to the Euro in the Forex market recently?
According to currency market data, the Euro struggled to gain positive momentum as investors digested a mixed bag of GDP figures from Germany. The German Federal Statistical Office confirmed that the country would return to growth in 2025, with the German economy expanding by 0.2%, in line with expectations.
However, sentiment was dampened by a downward revision to the 2024 GDP forecast, which was lowered from -0.2% to -0.5%, highlighting the fragility of the recovery in the Eurozone's largest economy. On the German inflation front, final CPI data is expected to confirm a sharp slowdown in price growth, with annual inflation forecast to fall from 2.3% to 1.8% in December. Obvioulsy, this decline could reignite concerns about weak domestic demand and the sustainability of Germany's economic recovery.
Overall, the euro remains under pressure from ongoing political tensions between the US and Europe over Greenland, with US President Donald Trump's remarks on the Arctic territory overshadowing recent talks.
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