EUR/USD Price Analysis and Trade Forecast: Daily Trading Signal

Daily Price Outlook

The EUR/USD pair has exhibited a notable trajectory in the financial market as of October 04. Currently, the currency pair is trading around the 1.0501 mark, reflecting the intricate interplay of global financial factors and currency dynamics. From a technical standpoint, several pivotal price points have emerged. The pivot point for the pair is identified at 1.0501. On the bullish side of the spectrum, immediate resistance looms at 1.0551, with subsequent resistances identified at 1.05912 and 1.06601. Conversely, for potential downward shifts, immediate support is situated at 1.04505, succeeded by supports at 1.04015 and 1.03262.

Diving into the technical indicators, the Relative Strength Index (RSI) for the EUR/USD stands at 34. An RSI below 50 suggests a bearish sentiment, and with the current value being even closer to 30, it is inching towards the oversold territory. The 50-Day Exponential Moving Average (50 EMA) is marked at 1.055. With the current price of the pair being below this level, it indicates a short-term bearish trend. The 50 EMA is also offering resistance at this mark, further solidifying the bearish perspective.

From a chart pattern perspective, the observed downward channel suggests a selling trend for the pair. This sentiment is echoed by the 50-day EMA, which also advocates for a selling trend, further establishing the resistance around the 1.055 mark.

In terms of the broader trend, the prevailing sentiment for the EUR/USD pair appears to be bearish. Over the short term, market participants might look to adopt a strategy of selling below 1.055 and considering buy positions above this level. As always, it's crucial for traders and investors to stay updated with any fundamental news that might influence market dynamics and adjust their strategies accordingly.

EUR/USD - Trade Idea

Entry Price – Sell Limit 1.05180

Take Profit – 1.04032

Stop Loss – 1.06021

Risk to Reward – 1: 1.3

Profit & Loss Per Standard Lot = +$1148/ -$841

Profit & Loss Per Micro Lot = +$114/ -$84