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

Daily Price Outlook 

- EUR/USD trades at 1.08597, down 0.15%; pivot point at 1.08175 indicates bearish sentiment.

- Key resistances at 1.08645, 1.09081, 1.09539; supports at 1.09975, 1.07728, 1.07258.

- Technical indicators (RSI at 27, MACD at -0.00078) and chart patterns suggest a bearish outlook with potential for further decline.

As of January 17, the EUR/USD pair is trading at 1.08597, marking a slight decrease of 0.15% within a 24-hour period. Analyzing the 4-hour chart, we can discern several critical levels that could influence the pair's short-term direction. The pivot point is established at 1.08175, indicating a potential shift in market sentiment. Resistance levels are identified at 1.08645, 1.09081, and 1.09539, which could act as barriers to upward movement. On the flip side, support levels are found at 1.09975, 1.07728, and 1.07258, offering potential floors for price dips.

The technical indicators provide a deeper insight into the pair's momentum. The RSI stands at 27, suggesting an oversold condition that might lead to a price correction. The MACD, at -0.00078, with its line below the signal line at -0.00244, indicates a bearish trend. The 50-Day EMA is positioned at 1.09361, further reinforcing the resistance zone.

A key observation in the chart patterns is the violation of the upward trendline around $1.0928. The closing of a bearish engulfing pattern below this level supports a selling trend, signaling a potential continuation of the downward momentum.

The overall trend for EUR/USD appears bearish. Traders might consider a sell strategy below 1.08812, with a take profit target at 1.08263 and a stop loss at 1.09151. The short-term forecast suggests the pair may test lower support levels, unless it breaks above the immediate resistance.

EUR/USD - Trade Ideas

Entry Price – Sell Below 1.08812

Take Profit – 1.08263

Stop Loss – 1.09151

Risk to Reward – 1: 1.7

Profit & Loss Per Standard Lot = +$1900/ -$1100

Profit & Loss Per Mini Lot = +$190/ -$110