Daily Price Outlook
- EUR/USD faces resistance at 1.1055, prompts gradual decline towards bullish channel's support.
- Double top pattern visible, EMA50 exerts downward pressure, and stochastic shows negative overlap.
- Bearish bias suggested, targets at 1.0935 and 1.0835 upon breaking bullish channel's support.
The EUR/USD pair has approached a significant resistance level at 1.1055 and is now experiencing a gradual decline, moving closer to the main bullish channel's support line. Notably, the price remains below the neckline of a double top pattern, which is visible on the chart.
Additionally, the EMA50 is exerting downward pressure on the price, and the stochastic indicator is currently showing negative overlap.
Considering these factors, it is prudent to adopt a bearish bias for the upcoming sessions. The initial targets for the bearish scenario involve breaking below the bullish channel's support line, potentially leading to further declines towards 1.0935 and 1.0835 levels upon surpassing the previous level of support.
However, a breach of the key resistance level at 1.1055 would invalidate the bearish scenario and signal a potential resumption of the main bullish trend, with potential targets around the 1.1170 areas initially.
For today's trading, the projected range is expected to lie between the support level at 1.0920 and the resistance level at 1.1070.
EUR/USD - Trade Idea
Entry Price – Sell Limit 1.10653
Take Profit – 1.09503
Stop Loss – 1.11643
Risk to Reward – 1: 1.6
Profit & Loss Per Standard Lot = +$1150/ -$990
Profit & Loss Per Micro Lot = +$115/ -$99
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