Daily Price Outlook
* EUR/USD currently trades at 1.0880, facing pressure from a strong US dollar. It declined from 1.100 to 1.0842 but found support at 1.0840, forming a double bottom pattern.
* RSI and MACD indicators indicate a potential corrective move. MACD approaches zero from overbought, signaling bullish sentiment. RSI crosses above 20 and holds near 40, supporting the likelihood of a correction.
* Resistance is expected around 1.0920 for EUR/USD, with a breakout potentially leading to upward movement towards 1.0944 or 1.10068. A break below 1.0840 may target the next support level at 1.00787.
Today, the EUR/USD currency pair is trading at the 1.0880 level. Recent strength in the US dollar exerted downward pressure on the euro, causing it to decline from the 1.100 level to the 1.0842 level.
However, the EUR/USD pair found support around the 1.0840 level, forming a double bottom pattern. The significance of this level is highlighted by the closing of candles, which has the potential to trigger a bullish move.
Analyzing the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) indicators, we observe that the MACD is emerging from the overbought zone and is currently approaching the zero level, suggesting a dominant bullish sentiment.
Similarly, the RSI is also recovering from the oversold zone and is now holding around the 40 level after crossing above the 20 oversold level. These indicators collectively indicate the likelihood of an upcoming corrective move.
On the upside, the EUR/USD pair is likely to encounter resistance around the 1.0920 level. Further beyond this, a breakout above the 1.0920 level could potentially lead to an upward move towards the 1.0944 or 1.10068 levels.
Conversely, if the EUR/USD pair breaks below the 1.0840 level, it may target the next support level at 1.00787.
EUR/USD - Trade Idea
Entry Price – Buy 1.08424
Stop Loss – 1.08030
Take Profit – 1.09431
Risk to Reward – 1 : 2.5
Profit & Loss Per Standard Lot = +$1007/ -$394
Profit & Loss Per Micro Lot = +$100/ -$39
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