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

Daily Price Outlook

- Key Resistance: Immediate resistance at $1.1232; next at $1.1266.

- Pivot Point: $1.1201 is critical for determining short-term direction.

- Immediate Support: Watch for potential support at $1.1150; a break could lead to further downside.

The EUR/USD pair is currently trading at $1.11828, reflecting a slight dip of 0.09% on the day. As we analyze the 4-hour chart, it becomes clear that the currency pair is hovering near a crucial pivot point at $1.1201.

This level is proving to be a significant battleground for bulls and bears alike, with immediate resistance sitting just above at $1.1232.

The EUR/USD has been on an upward trajectory in recent sessions, but the momentum is showing signs of fatigue as it nears overbought conditions.

The Relative Strength Index (RSI) is currently at 69, suggesting that the pair is approaching overbought territory.

While the RSI hasn’t yet crossed the 70 mark, it's close enough to warrant caution. Traders may want to consider this as a signal that the upward momentum could be losing steam.

Meanwhile, the 50-day Exponential Moving Average (EMA), currently positioned at $1.1077, is still well below the current price, reinforcing the general uptrend that we’ve seen over the past few weeks.

Should the price break above the immediate resistance at $1.1232, the next hurdles to watch are $1.1266 and $1.1299.

A clear break above these levels could set the stage for further gains. On the downside, immediate support is located at $1.1150, with additional support levels at $1.1107 and $1.1072.

If EUR/USD slips below $1.1150, we might see a more pronounced correction, bringing the pair closer to the 50 EMA at $1.1077.

Conclusion: The EUR/USD outlook remains cautiously optimistic as long as the pair stays above the $1.1150 support level.

However, traders should be mindful of the near-overbought RSI. Consider selling below $1.1201 with a target of $1.1150, and set a stop loss at $1.1232 to manage risk.

EUR/USD - Trade Ideas

Entry Price – Sell Below 1.12018

Take Profit – 1.11503

Stop Loss – 1.12313

Risk to Reward – 1: 1.75

Profit & Loss Per Standard Lot = +$515/ -$295

Profit & Loss Per Mini Lot = +$51/ -$29