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

Daily Price Outlook

- Immediate Resistance: $1.1164, next at $1.1191 and $1.1224.

- Immediate Support: $1.1089, followed by $1.1063 and $1.1041.

- RSI at 76: Overbought conditions suggest a potential bearish correction.

EUR/USD is currently trading at $1.11205, showing a modest increase of 0.05% on the day. On the 4-hour chart, the pivot point is situated at $1.1132, a critical level that could dictate the pair's next move.

Immediate resistance is at $1.1164, followed by $1.1191 and $1.1224. On the downside, immediate support is seen at $1.1089, with further levels at $1.1063 and $1.1041.

The Relative Strength Index (RSI) stands at 76, indicating that the pair is firmly in overbought territory. This suggests that the upward momentum may be losing steam, potentially opening the door for a bearish correction.

The 50-day Exponential Moving Average (EMA) is positioned at $1.1000, providing a longer-term bullish signal, but the short-term outlook remains cautious due to the overbought conditions.

Given the overbought RSI and the strong resistance levels ahead, a pullback could be on the horizon. If the pair fails to sustain its upward momentum above the pivot point at $1.1132, a decline toward the next support levels could be expected.

Traders may consider selling below $1.11316, targeting a take profit at $1.10640 with a stop loss at $1.11651.

EUR/USD - Trade Ideas

Entry Price – Sell Below 1.11316

Take Profit – 1.10640

Stop Loss – 1.11651

Risk to Reward – 1: 2

Profit & Loss Per Standard Lot = +$676/ -$335

Profit & Loss Per Mini Lot = +$67/ -$33