EUR/USD Price Analysis – Dec 04, 2024
Daily Price Outlook
During European trading on Wednesday, the EUR/USD pair is slightly down but holding steady around 1.0511. However, the currency pair is mostly moving sideways as traders await a no-confidence vote against Prime Minister Michel Barnier, led by French far-right and left-wing parties.
This vote has raised concerns about political instability in France, which could weigh on the Euro (EUR) if the government collapses.
On the other hand, the US Dollar is also seeing a slight dip, providing the EUR/USD pair with some support. However, the outlook for the Euro is uncertain, as European Central Bank (ECB) officials hint at possible interest rate cuts. Traders expect a rate cut at the ECB’s meeting on December 12.
US Economic Data and Federal Reserve Outlook Impact Dollar Strength
On the US front, investors are closely watching the upcoming economic data, including the ADP Employment Change and the ISM Services PMI for November.
Economists predict that the US private sector added 150,000 jobs in November, a significant drop from 233,000 in October.
The Services PMI, which measures activity in the services sector, is expected to decline slightly to 55.5 from 56.0, indicating slower growth in this sector.
These data points will influence expectations for the Federal Reserve's interest rate decision on December 18.
According to the CME FedWatch tool, there's a 74% chance the Fed will cut rates by 25 basis points, bringing them to 4.25%-4.50%, and a 26% chance that rates will remain unchanged.
Investors will also be paying attention to the Fed’s Beige Book and comments from Chairman Jerome Powell for more clues on future rate actions.
Meanwhile, the US Dollar is showing a muted trend ahead of the economic releases. The US Dollar Index (DXY), which tracks the value of the US Dollar against six major currencies, is fluctuating around 106.30.
The outlook for the Dollar remains generally positive, especially after US President-elect Donald Trump threatened to impose 100% tariffs on BRICS countries, a move that could further strengthen the Dollar's dominance.
EUR/USD – Technical Analysis
EUR/USD is trading at $1.05132, up 0.08%, as it consolidates above its immediate support at $1.04622. The pair remains below its pivot point of $1.05655, signaling a cautious tone amid mixed market sentiment.
Immediate resistance lies at $1.05973, with further levels at $1.06321, while on the downside, support is seen at $1.04255, followed by $1.03930.
The RSI at 49 indicates neutral momentum, suggesting that the pair lacks a clear directional bias. The 50-day EMA at $1.05290 acts as a key resistance level, aligning with the broader downward trend.
A sustained break below $1.05280 could confirm bearish momentum, targeting $1.04622 or lower. Conversely, a recovery above $1.05655 would shift the focus toward higher resistance levels.
Technical indicators suggest that traders remain cautious, with the pair trading near pivotal levels. Entry points below $1.05280 provide an opportunity for bearish plays, with a target of $1.04622 and a stop-loss at $1.05667.
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EUR/USD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- Resistance Levels: $1.05973, $1.06321; a break above $1.05655 signals bullish momentum.
- Support Levels: $1.04622, $1.04255; watch for a break below $1.05280 for bearish moves.
- Indicators: RSI at 49 reflects indecision; 50 EMA at $1.05290 reinforces resistance.
EUR/USD is trading at $1.05132, up 0.08%, as it consolidates above its immediate support at $1.04622. The pair remains below its pivot point of $1.05655, signaling a cautious tone amid mixed market sentiment.
Immediate resistance lies at $1.05973, with further levels at $1.06321, while on the downside, support is seen at $1.04255, followed by $1.03930.
The RSI at 49 indicates neutral momentum, suggesting that the pair lacks a clear directional bias. The 50-day EMA at $1.05290 acts as a key resistance level, aligning with the broader downward trend.
A sustained break below $1.05280 could confirm bearish momentum, targeting $1.04622 or lower. Conversely, a recovery above $1.05655 would shift the focus toward higher resistance levels.
Technical indicators suggest that traders remain cautious, with the pair trading near pivotal levels. Entry points below $1.05280 provide an opportunity for bearish plays, with a target of $1.04622 and a stop-loss at $1.05667.
EUR/USD - Trade Ideas
Entry Price – Sell Below 1.05280
Take Profit – 1.05280
Stop Loss – 1.05667
Risk to Reward – 1: 1.5
Profit & Loss Per Standard Lot = +$580/ -$387
Profit & Loss Per Mini Lot = +$58/ -$38
EUR/USD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- Resistance Levels: $1.05657 (pivot), $1.05973, $1.06321.
- Support Levels: $1.04983, $1.04690, $1.04332.
- Momentum: RSI at 40 signals bearish momentum; the 50-day EMA at $1.05339 adds to overhead resistance.
The EUR/USD pair is trading at $1.05217, down 0.50%, reflecting sustained bearish momentum. The currency pair remains below its critical pivot point at $1.05657, signaling continued downside pressure.
Immediate resistance is seen at $1.05973, with further hurdles at $1.06321. These levels are pivotal, as a breakout above $1.05973 could signal a reversal of the bearish trend. However, the 50-day EMA at $1.05339 reinforces near-term resistance, limiting upward potential.
On the downside, immediate support rests at $1.04983, followed by deeper levels at $1.04690 and $1.04332. The RSI at 40 indicates bearish sentiment, though it is not yet in oversold territory, leaving room for further declines.
A sustained break below $1.04983 could accelerate selling pressure, targeting the $1.04690 support level, while failure to breach resistance suggests continued consolidation within the current range.
The broader technical outlook remains bearish as long as EUR/USD trades below $1.05657. Traders should monitor key support levels to gauge the extent of downside risk.
A decisive move above the pivot point could shift sentiment and attract bullish interest, but caution is warranted given the current downward trend.
EUR/USD - Trade Ideas
Entry Price – Sell Below 1.05297
Take Profit – 1.04988
Stop Loss – 1.05530
Risk to Reward – 1: 1.3
Profit & Loss Per Standard Lot = +$309/ -$233
Profit & Loss Per Mini Lot = +$30/ -$23
EUR/USD Price Analysis – Dec 02, 2024
Daily Price Outlook
The EUR/USD pair is facing some selling pressure, dropping to around 1.0514 and hitting an intra-day low of 1.0496, as the US dollar strengthens during the early hours of European trading on Monday.
Investors will be watching closely for European Central Bank President Christine Lagarde's speech and the release of the US ISM Manufacturing Purchasing Managers' Index (PMI) later today.
Although the losses in the EUR/USD pair could be short-lived, the rise in inflation in the Eurozone above the European Central Bank's target is putting increasing pressure on the ECB to tighten its monetary policy. This could strengthen the Euro against the US Dollar, potentially pushing the EUR/USD pair higher as markets react to the inflation data.
Impact of ECB's Rate Cut Expectations and Weak Growth Outlook on the EUR/USD Pair
On the EUR front, inflation in the Eurozone, measured by the Harmonized Index of Consumer Prices (HICP), rose to 2.3% year-on-year (YoY) in November, up from 2.0% in October.
This increase met market expectations but went beyond the European Central Bank's (ECB) target of 2.0%.
Meanwhile, the Core HICP, which excludes volatile items like food and energy, climbed by 2.8% YoY in November, slightly higher than the previous reading of 2.7%, also in line with expectations.
Despite this rise in inflation, the market has already priced in a 25 basis point (bps) rate cut from the ECB in December, which would mark the bank's fourth rate reduction this year.
However, expectations for a larger 50 bps cut have been fading. This change in outlook is due to some improvement in the Eurozone's growth forecast, although it remains weak.
As a result, the market's reduced expectations for aggressive rate cuts are limiting any significant movement in the Euro.
The ECB's expected rate cut is still putting pressure on the Euro, as it signals the bank's ongoing efforts to support the struggling economy.
As a result, the Euro has faced some selling pressure, which could continue in the near term as market participants adjust to the ECB's policies and the overall economic outlook.
Therefore, the ECB's expected rate cut and weaker growth outlook are putting pressure on the Euro, likely leading to further selling of EUR.
This could result in continued downward movement for the EUR/USD pair as investors adjust to the ECB's policies.
Impact of the Fed's Cautious Approach on the US Dollar and EUR/USD Pair
On the US front, the Federal Reserve (Fed) is taking a cautious approach, which is likely to support the strength of the US Dollar.
Fed Chair Jerome Powell recently stated that the economy isn’t showing signs that would require a quick decision to lower interest rates.
He also mentioned that the current economic strength gives the Fed the flexibility to make decisions carefully.
As a result, the Fed is not rushing into rate cuts, which helps maintain investor confidence in the US Dollar. Powell's comments suggest the central bank will continue to closely monitor economic data before making any drastic changes.
This cautious stance provides stability to the US Dollar, as investors are less concerned about major rate cuts in the near future.
Market expectations indicate a nearly 65.4% chance that the Fed will reduce rates by a quarter point in December, according to the CME FedWatch Tool.
However, with the economy showing resilience, the Fed’s more measured approach means the US Dollar could remain supported, limiting any sharp decline. As a result, the US Dollar’s strength may continue to weigh on the EUR/USD pair.
EUR/USD – Technical Analysis
The EUR/USD pair is trading at $1.05217, down 0.50%, reflecting sustained bearish momentum. The currency pair remains below its critical pivot point at $1.05657, signaling continued downside pressure.
Immediate resistance is seen at $1.05973, with further hurdles at $1.06321. These levels are pivotal, as a breakout above $1.05973 could signal a reversal of the bearish trend. However, the 50-day EMA at $1.05339 reinforces near-term resistance, limiting upward potential.
On the downside, immediate support rests at $1.04983, followed by deeper levels at $1.04690 and $1.04332. The RSI at 40 indicates bearish sentiment, though it is not yet in oversold territory, leaving room for further declines.
A sustained break below $1.04983 could accelerate selling pressure, targeting the $1.04690 support level, while failure to breach resistance suggests continued consolidation within the current range.
The broader technical outlook remains bearish as long as EUR/USD trades below $1.05657. Traders should monitor key support levels to gauge the extent of downside risk.
A decisive move above the pivot point could shift sentiment and attract bullish interest, but caution is warranted given the current downward trend.
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EUR/USD Price Analysis – Nov 29, 2024
Daily Price Outlook
During the European trading session, the EUR/USD pair has been facing selling pressure after reaching a fresh weekly high near 1.0580.
This upward momentum faded as the flash Eurozone Harmonized Index of Consumer Prices (HICP) for November showed a month-on-month decline in price pressures, which weighed on the Euro.
At the same time, the US dollar saw a rebound, which pushed the pair back below 1.0600, with the USD regaining some strength in a shortened holiday week.
EUR/USD Faces Pressure as Weak Economic Data Fuels ECB Rate Cut Expectations
On the data front, the flash Eurozone Harmonized Index of Consumer Prices (HICP) data for November showed a drop in price pressures. The monthly headline HICP decreased by 0.3%, while core HICP, which excludes food and energy prices, fell by 0.6%.
This weak data sparked expectations that the European Central Bank (ECB) might cut interest rates by 50 basis points in its December meeting. So far, the ECB has already lowered its Deposit Facility Rate by 75 basis points this year, to 3.25%.
Apart from this, the weak German Retail Sales data for October showed a larger-than-expected decline of 1.5%, after a 1.2% increase in September. Economists had predicted a smaller drop of 0.3%.
On a year-on-year basis, Retail Sales grew by just 1%, far below the expected 3.2% and slower than the previous month's 3.8%. These figures raised concerns about consumer spending and added to the speculation of a potential ECB rate cut.
Meanwhile, ECB officials, like François Villeroy de Galhau, have hinted at the possibility of a large interest rate cut. In his speech on Thursday, he mentioned that the ECB might reduce rates in December, depending on economic data and risks.
Traders are currently expecting the ECB to cut rates by at least 25 basis points in December, and further cuts are anticipated through 2025, pushing the Deposit Facility Rate down to 1.75% by the end of next year.
US Dollar Rebounds as Markets Anticipate Economic and Monetary Policy Shifts
On the US front, the US Dollar rebounded in a holiday-shortened week and the US Dollar Index (DXY), which tracks the USD against six major currencies, recovered from early losses, rising to around 106.00 after dipping to a two-week low of 105.60 on Friday.
However, the rebound began on Monday after US President-elect Donald Trump nominated Scott Bessent, a veteran hedge fund manager, as Treasury Secretary.
Markets expected Bessent to carry out Trump’s economic plans without affecting foreign relations or fiscal policy. In an interview with the Financial Times, Bessent explained that he plans to slowly introduce tariffs and reduce the budget deficit by cutting spending, without causing a big rise in inflation.
On the monetary policy front, experts believe the Federal Reserve (Fed) will be cautious about cutting interest rates, as the core Personal Consumption Expenditures Price Index (PCE) showed increased inflation in October. However, the likelihood of a 25 basis point rate cut in December stands at 66%, with the rest expecting no change.
Therefore, the rebound of the US dollar, driven by expectations of fiscal policy changes and cautious Fed rate cuts, strengthened the USD, putting downward pressure on the EUR/USD pair.
EUR/USD – Technical Analysis
EUR/USD is trading at $1.05697, up 0.17% for the session, as the pair shows signs of sustained bullish momentum above the $1.05590 pivot point. Immediate resistance is positioned at $1.06071, aligning with the next key target of $1.06457.
A breakout above these levels could drive further gains toward $1.06811, signaling continued optimism in the euro.
On the downside, immediate support rests at $1.05269, followed by $1.04983 and $1.04597, with the 50-day EMA at $1.05161 providing dynamic support to the pair. A breach below these levels could shift the sentiment bearish, with increased selling pressure likely if $1.04983 fails to hold.
The RSI stands at 61, indicating moderate bullish momentum without nearing overbought territory, which leaves room for additional upside. The price action suggests a favorable outlook for buyers if the pair sustains its position above $1.05590.
Traders may look to enter long positions above $1.05583, targeting $1.06070, while maintaining a stop-loss at $1.05210 for prudent risk management.
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EUR/USD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- Resistance Levels: Key hurdles at $1.06071, $1.06457, and $1.06811 for sustained bullish momentum.
- Support Levels: Immediate at $1.05269, followed by $1.04983 and $1.04597.
- Trend Indicators: RSI at 61 supports a bullish bias, while the 50-day EMA at $1.05161 bolsters dynamic support.
EUR/USD is trading at $1.05697, up 0.17% for the session, as the pair shows signs of sustained bullish momentum above the $1.05590 pivot point. Immediate resistance is positioned at $1.06071, aligning with the next key target of $1.06457.
A breakout above these levels could drive further gains toward $1.06811, signaling continued optimism in the euro.
On the downside, immediate support rests at $1.05269, followed by $1.04983 and $1.04597, with the 50-day EMA at $1.05161 providing dynamic support to the pair. A breach below these levels could shift the sentiment bearish, with increased selling pressure likely if $1.04983 fails to hold.
The RSI stands at 61, indicating moderate bullish momentum without nearing overbought territory, which leaves room for additional upside. The price action suggests a favorable outlook for buyers if the pair sustains its position above $1.05590.
Traders may look to enter long positions above $1.05583, targeting $1.06070, while maintaining a stop-loss at $1.05210 for prudent risk management.
EUR/USD - Trade Ideas
Entry Price – Buy Above 1.05583
Take Profit – 1.06070
Stop Loss – 1.05210
Risk to Reward – 1: 1.3
Profit & Loss Per Standard Lot = +$487/ -$373
Profit & Loss Per Mini Lot = +$48/ -$37
EUR/USD Price Analysis – Nov 27, 2024
Daily Price Outlook
During the European trading session, the EUR/USD pair continued its upward momentum, reaching an intra-day high of 1.0539. The pair strengthened as the US Dollar weakened ahead of key US economic data, including the Personal Consumption Expenditure (PCE) Price Index, Durable Goods Orders, Personal Spending for October, revised Q3 GDP growth estimates, and Initial Jobless Claims for the week ending November 22, all set to be released later in the North American session.
Despite the gain in EUR/USD pair, the overall outlook for the shared currency remains cautious as European Central Bank (ECB) officials have expressed concern about the Eurozone’s economic growth, both now and in the future, which could limit further strength for the Euro.
Uncertainty Over ECB's Economic Outlook and Rate Cuts Weigh on EUR/USD Pair
On the EUR front, the outlook for the Euro remains uncertain as the European Central Bank (ECB) is concerned about the Eurozone's economic growth. ECB policymakers are increasingly worried about the future, with some even fearing that inflation could fall below the bank's target.
On Tuesday, ECB policymaker Mario Centeno, who is also the head of Portugal's central bank, warned that the Eurozone economy is stagnating, and the risks are mainly on the downside. He also mentioned that the threat of tariffs, especially from the US under Trump, adds to these risks. Centeno cautioned that inflation could fall short of the ECB's target, suggesting that the bank should not wait too long before cutting interest rates.
On the other hand, ECB executive board member Isabel Schnabel has a more positive view on inflation, stating that the risk of inflation undershooting the target is not a major concern. She also hinted that if inflation remains in line with expectations, the ECB could gradually move toward a more neutral monetary policy.
Market participants are divided on the possibility of a rate cut in December, with some expecting a 50 basis point reduction. Investors are now waiting for upcoming inflation data, which could offer more clarity on the ECB's next move.
Hence, the uncertainty around the ECB’s economic outlook and potential rate cuts could weigh on the Euro, limiting its gains against the US Dollar. However, the possibility of a rate cut in December might provide some support for the EUR/USD pair.
US Dollar Weakens Amid Gradual Tariff Plans and Fed Rate Cut Expectations, Supporting EUR/USD
On the US front, the broad-based US dollar has recently lost some strength after hitting a two-year high last Friday. The US Dollar Index (DXY), which tracks the Greenback against six major currencies, dropped to a fresh weekly low around 106.35. This drop came after comments from Scott Bessent, a hedge fund manager nominated by President-elect Donald Trump for Treasury Secretary. Bessent stated that any tariffs imposed would be implemented gradually, and the budget deficit would be reduced without causing high inflation, easing some market fears.
Investors are now focused on the upcoming PCE inflation data, which is the Federal Reserve’s preferred measure for making policy decisions. Economists expect the headline PCE inflation to rise to 2.3% year-over-year in October, up from 2.1% in September. The core PCE, which excludes food and energy prices, is expected to rise by 2.8%, slightly higher than the previous month's 2.7%.
Therefore, the US dollar's recent weakness, driven by comments on gradual tariff implementation and expectations of a potential Fed rate cut, could support the EUR/USD pair. If PCE data signals lower inflation, it may reduce pressure on the Fed to hike rates.
EUR/USD – Technical Analysis
EUR/USD is trading at $1.04850, down 0.03%, as the pair struggles to hold above key technical levels. On the 4-hour chart, the pivot point at $1.05203 serves as a significant hurdle, with immediate resistance at $1.05625 and further resistance at $1.06071.
A break above these levels could indicate a reversal of the recent bearish sentiment and open the door for further gains.
On the downside, immediate support lies at $1.04378, with additional levels at $1.03854 and $1.03489. The pair is currently hovering near its 50 EMA, which sits at $1.04776. This level is providing short-term support, but a sustained break below it could reinforce bearish momentum.
The RSI is at 49, reflecting a neutral bias but leaning slightly toward oversold territory. This suggests that while the pair is under pressure, it may find temporary relief if buyers step in near current support levels.
The outlook for EUR/USD depends heavily on its ability to regain traction above the $1.05203 pivot point. A failure to break this level could see the pair retest support at $1.04378, potentially triggering further declines. Conversely, a move above $1.05625 would indicate bullish momentum, shifting the focus toward higher resistance levels.
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EUR/USD Price Analysis – Nov 25, 2024
Daily Price Outlook
The EUR/USD currency pair has regained some of its earlier bullish momentum, holding steady around the 1.0492 mark and even reaching an intra-day high of 1.0501. This comes despite the mixed results from the German IFO survey.
However, the recent bearish trend in the pair can be linked to a weakening US dollar, which has lost some ground due to technical factors. The US Dollar Index (DXY), a key measure of the dollar’s strength against other major currencies, dropped to around 107.00 after peaking at a two-year high of 108.07 on Friday.
Looking ahead, the shared currency remains on shaky ground, as market uncertainty grows. However, the potential appointment of Scott Bessent as Treasury Secretary has sparked concerns, with investors fearing that his selection could lead to tariff hikes, escalating into a global trade war. Such measures would likely hurt the already fragile Eurozone economy, particularly its export sector, adding pressure on the euro.
EUR/USD Recovers Amid Weaker US Dollar and Mixed Eurozone Data
Market traders are closely monitoring the EUR/USD pair, which is recovering some of its lost ground. It recently climbed to an intra-day high of 1.0501, supported by a weaker US dollar. The US Dollar Index (DXY) has dropped to around 107.00 after reaching a two-year high of 108.07, providing relief for the euro.
However, concerns linger over potential US tariff hikes under Scott Bessent, whose expected appointment as Treasury Secretary has fueled fears of a global trade war.
European Central Bank (ECB) Chief Economist Philip Lane has warned that such measures could significantly disrupt the Eurozone economy.
Recent data from Europe paints a mixed picture. Germany’s IFO Business Sentiment Index for November showed a slight decline in business morale, while expectations for the next six months held relatively steady.
Meanwhile, the Flash PMI data for November revealed continued challenges, with both the services and manufacturing sectors contracting.
New orders have now declined for six straight months, creating a stagflationary environment, according to analysts. Despite this, the euro has shown resilience, recovering from earlier lows.
ECB Chief Economist Philip Lane added to the positive sentiment by suggesting that inflation control could be achieved next year, making restrictive policies unnecessary afterward. This outlook, combined with the euro’s current recovery momentum, gives traders cautious optimism for the EUR/USD’s near-term performance.
EUR/USD – Technical Analysis
The EUR/USD pair is trading at $1.04778, down 0.61%, as the dollar strengthens amid broader risk-off sentiment. The pair is holding below the pivot point at $1.05203, signaling further bearish potential. Immediate resistance stands at $1.04901, with key levels at $1.05625 and $1.06071 likely to act as significant barriers if the euro attempts a rebound.
On the downside, immediate support is at $1.03854, followed by stronger levels at $1.03489. A decisive break below $1.03854 could expose EUR/USD to further declines, potentially testing the $1.03400 area. The 50 EMA at $1.05197 is adding to selling pressure, reinforcing the bearish structure.
The RSI at 50 indicates neutral momentum, providing room for further moves in either direction. Traders are closely watching the $1.04893 entry point for potential short positions, with a target of $1.04366 and a stop loss at $1.05209.
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EUR/USD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- Resistance Levels: $1.04901, $1.05625, $1.06071.
- Support Levels: $1.03854, $1.03489.
- Momentum Indicators: RSI at 50 reflects neutral conditions, leaving room for further directional moves.
The EUR/USD pair is trading at $1.04778, down 0.61%, as the dollar strengthens amid broader risk-off sentiment. The pair is holding below the pivot point at $1.05203, signaling further bearish potential. Immediate resistance stands at $1.04901, with key levels at $1.05625 and $1.06071 likely to act as significant barriers if the euro attempts a rebound.
On the downside, immediate support is at $1.03854, followed by stronger levels at $1.03489. A decisive break below $1.03854 could expose EUR/USD to further declines, potentially testing the $1.03400 area. The 50 EMA at $1.05197 is adding to selling pressure, reinforcing the bearish structure.
The RSI at 50 indicates neutral momentum, providing room for further moves in either direction. Traders are closely watching the $1.04893 entry point for potential short positions, with a target of $1.04366 and a stop loss at $1.05209.
EUR/USD - Trade Ideas
Entry Price – Sell Below 1.04893
Take Profit – 1.04366
Stop Loss – 1.05209
Risk to Reward – 1: 1.6
Profit & Loss Per Standard Lot = +$527/ -$316
Profit & Loss Per Mini Lot = +$52/ -$31
EUR/USD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- Bearish Bias: Trading below the pivot point and 50-day EMA at $1.05494 reinforces downside risks.
- Support Levels: Immediate support at $1.04516, with potential declines toward $1.04300 if breached.
- Weak Momentum: RSI at 38 indicates subdued buying interest, leaning toward oversold territory.
EUR/USD is trading at $1.04841, marking a modest gain of 0.10%, as the pair consolidates near critical support levels. Immediate resistance lies at $1.05129, with higher targets at $1.05767 and $1.06083. On the downside, immediate support is set at $1.04516, followed by $1.04300 and $1.03999, signaling the potential for bearish pressure if the pair breaches key levels.
The pivot point at $1.05548 serves as a key marker for directional bias. Currently, the pair trades below the 50-day EMA at $1.05494, indicating a bearish trend in the short term. The RSI at 38 suggests weak momentum, leaning toward oversold conditions but not yet signaling a reversal.
Traders are advised to consider selling below $1.05122, targeting $1.04501 with a stop-loss at $1.05629. A break below $1.04516 could lead to further declines toward $1.04300, while a recovery above $1.05129 would challenge bearish dominance and open the path to $1.05767.
EUR/USD - Trade Ideas
Entry Price – Sell Below 1.05122
Take Profit – 1.04501
Stop Loss – 1.05629
Risk to Reward – 1: 1.2
Profit & Loss Per Standard Lot = +$621/ -$507
Profit & Loss Per Mini Lot = +$62/ -$50