EUR/USD Analysis Summary Today
- Overall Trend: Strong bullish.
- Support Levels for EUR/USD Today: 1.1790 – 1.1700 – 1.1630
- Resistance Levels for EUR/USD Today: 1.1930 – 1.2000 – 1.2080
EUR/USD Trading Signals:
- Buy EUR/USD from the support level of 1.1760 with a target of 1.2000 and a stop loss at 1.1670.
- Sell EUR/USD from the resistance level of 1.1960 with a target of 1.1600 and a stop loss at 1.2070.
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Technical Analysis of EUR/USD Today:
At the start of this significant trading week, the EUR/USD pair experienced a bullish price gap, culminating in a test of the 1.1897 resistance level—the pair’s highest in over four months. It stabilized around 1.1860 at the time of writing. According to data from reliable trading platforms, these gains are crucial for strengthening the bullish outlook on the daily chart.
Further confirming this shift is the 14-day Relative Strength Index (RSI) reaching 68, its closest point to the overbought line. Simultaneously, the MACD indicator is steadily rising. The psychological resistance level of 1.2000 remains crucial for confirming the strength and continuation of this upward trend.
According to currency market movements, the US dollar is experiencing a noticeable decline against other major currencies ahead of the Federal Reserve's announcement this week. Unusually, markets were cautiously awaiting any movement before the announcement, and it seems that ongoing global tensions are contributing to this performance at the start of the trading week.
The Strongest Bearish Scenario for EURUSD
Based on currency market trading over the same timeframe, the daily chart suggests that a return of the EUR/USD exchange rate to the 1.1600 support level would be significant for bears to regain control of currency prices. On the economic data front, this week is relatively quiet in major economies, with anticipation focused on the release of inflation figures from Germany, which will influence inflation expectations for the Eurozone next week.
Generally, the EUR/USD could see an increase if the German data comes in higher than expected. However, the European Central Bank's interest rate expectations remain remarkably stable, meaning that the German inflation figures are unlikely to have a lasting impact on the market.
German Economy: A Positive Shift
German economic activity recorded its strongest growth since October; the economy is described as starting the year on a growth trajectory, contrasting with the recent recession. Currently, supply chain pressures remain under control. Although delivery times increased again, the rise was the smallest in five months, indicating the absence of a new supply chain shock.
However, the current rate of expansion is among the slowest since September, and both service sector activity and new order growth have slowed, suggesting a fragile recovery rather than an acceleration in growth. On the employment front, employment levels fell for the first time in four months, the steepest decline in almost a year, and concentrated largely in Germany, where job losses were the worst since 2009 outside of the pandemic.
Trading Advice:
Dear TradersUp trader, we recommend selling EUR/USD near the 1.2000 psychological resistance, provided you manage risk carefully. Diversify your investments across gold, silver, oil, and cryptocurrencies to mitigate risk and protect your portfolio against sudden price gaps in the markets.
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