Technical Analysis

EUR/USD Price Analysis – Feb 05, 2024

By LonghornFX Technical Analysis
Feb 5, 2024
Eurusd

Daily Price Outlook 

The EUR/USD currency pair failed to stop its bearish bias and experienced some further selling pressure around the 1.0768 level during the early European trading hours on Monday. However, the reason for its downward trend can be attributed to the bullish US Dollar, which was being backed by the hawkish stance by the Federal Reserve (Fed) Chair Jerome Powell. Apart from this, the risk-on market sentiment, backed by the previously released upbeat US data, was seen as another key factor that boosted the US dollar and contributed to the EUR/USD pair losses.

Powell's Cautious Stance and Positive US Indicators: Impact on EUR/USD Bearish Trend

It is worth noting that Federal Reserve Chairman Jerome Powell mentioned on Sunday that a rate cut in March is too soon because the Federal Open Market Committee (FOMC) is not confident in inflation reaching a sustainable 2%. Powell stated that while rate cuts are expected this year, they want to be open to the possibility of reducing rates starting in spring.

In terms of economic indicators, Nonfarm Payrolls (NFP) increased by 353K in January, surpassing expectations. Meanwhile, the Unemployment Rate held steady at 3.7%. Wage growth showed improvement, with Average Hourly Earnings rising by 4.5% YoY in January.

Therefore, the powell's cautious stance on rate cuts and positive US economic indicators, including robust job growth and wage increases, strengthened the US dollar. This, combined with uncertainties, likely contributed to a bearish impact on the EUR/USD pair.

EUR/USD Price Chart - Source: Tradingview
EUR/USD Price Chart - Source: Tradingview

EUR/USD - Technical Analysis

The EUR/USD pair is threading through a descending channel, presently hovering slightly over the pivotal support at $1.0777. This particular juncture is pivotal, doubling as the lower edge of the trading channel. Should the pair retreat, support might be encountered at $1.07443 and $1.07157, marking potential inflection points.

Confronting upward momentum, the pair is met with resistance at the channel's boundary, with $1.08437 as the initial barrier. Further resistance is projected at $1.08935, a point of previous market friction, which may stall an ascent.

The RSI indicates a possible pivot in market sentiment, resting at 46.80. The appearance of bullish candlestick patterns at this RSI value hints at waning bearish control, potentially clearing the path for upward movement should the currency sustain above the pivot level.

Despite the 50-day EMA suggesting a downtrend, the current market behavior near the pivot point might imply underlying bullish prospects. Thus, the EUR/USD presents a case for a bullish tilt, warranting a buy stance if it steadies above the $1.07715 threshold.

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EUR/USD

Daily Trade Ideas

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

By LonghornFX Technical Analysis
Feb 5, 2024
Eurusd

Daily Price Outlook 

- EUR/USD tests pivotal $1.0777 support within a downward channel, hinting at a potential reversal.

- Immediate resistance seen at $1.08437, with further barriers up to $1.08935.

- RSI at 46.80 and bullish candles suggest a potential upswing, buy signal above $1.07715.

The EUR/USD pair is threading through a descending channel, presently hovering slightly over the pivotal support at $1.0777. This particular juncture is pivotal, doubling as the lower edge of the trading channel. Should the pair retreat, support might be encountered at $1.07443 and $1.07157, marking potential inflection points.

Confronting upward momentum, the pair is met with resistance at the channel's boundary, with $1.08437 as the initial barrier. Further resistance is projected at $1.08935, a point of previous market friction, which may stall an ascent.

The RSI indicates a possible pivot in market sentiment, resting at 46.80. The appearance of bullish candlestick patterns at this RSI value hints at waning bearish control, potentially clearing the path for upward movement should the currency sustain above the pivot level.

Despite the 50-day EMA suggesting a downtrend, the current market behavior near the pivot point might imply underlying bullish prospects. Thus, the EUR/USD presents a case for a bullish tilt, warranting a buy stance if it steadies above the $1.07715 threshold.

EUR/USD Price Chart - Source: Tradingview
EUR/USD Price Chart - Source: Tradingview

EUR/USD - Trade Ideas

Entry Price – Buy Above 1.07724

Take Profit – 1.08300

Stop Loss – 1.07384

Risk to Reward – 1: 1.6

Profit & Loss Per Standard Lot = +$576/ -$340

Profit & Loss Per Mini Lot = +$57/ -$34

EUR/USD

Technical Analysis

EUR/USD Price Analysis – Feb 02, 2024

By LonghornFX Technical Analysis
Feb 2, 2024
Eurusd

Daily Price Outlook 

The EUR/USD currency pair managed to stop its losses and gained some positive traction above the 1.0890 level. However, the reason for its upward trend can be attributed to the bearish US dollar. The broad-based US dollar is going to end this week on the bearish track ahead of key U.S. nonfarm payrolls data. The US Federal Reserve (Fed) decided to hold rates unchanged and shrugged off market bets to cut rates in March. This stance drove investors into risk-driven assets despite the prospect of higher-for-longer interest rates. In contrast to this, the high rate cut expectations for the ECB in April and fully priced-in cuts for June may lead to a weakened Euro (EUR) against the US Dollar (USD), impacting the EUR/USD pair with potential downward pressure.

Federal Reserve's Stance and US Economic Data Impact on EUR/USD Pair

It's important to note that Federal Reserve Chair Jerome Powell, speaking after the recent FOMC decision, highlighted that it's too early to claim victory over inflation. Despite acknowledging a downward trend in prices, he ruled out a rate cut in March. Despite this, S&P Global reported a boost in US business activity, with the Manufacturing PMI climbing from 47.9 to 50.7 in January.

Although the ISM Manufacturing PMI for January was at 49.1, indicating a recessionary territory, it was an improvement from December and surpassed expectations of 47. This data follows the Federal Reserve's decision to keep interest rates steady, and despite ruling out a March rate cut, Powell expressed cautious optimism about the US economy.

Therefore, this news will likely pressure the EUR/USD pair downward as the Federal Reserve's cautious optimism and the absence of a March rate cut strengthen the US dollar. However, concerns about inflation and recessionary signs could create some volatility favoring the EUR.

Eurozone Inflation Data and Anticipated ECB Rate Cuts Impact EUR/USD Pair

At home, Eurozone inflation, measured by the Harmonized Index of Consumer Prices (HICP), inched down to 2.8% YoY in January from 2.9%. The Core HICP dropped from 3.4% to 3.3%, missing the expected 3.2%. Looking ahead, there's an 89% expectation for an ECB rate cut in April, fully priced in for June. The Eurozone's lower inflation and anticipated ECB rate cuts may weaken the Euro against the US Dollar, influencing the EUR/USD pair downward.

EUR/USD Price Chart - Source: Tradingview
EUR/USD Price Chart - Source: Tradingview

EUR/USD - Technical Analysis

The EUR/USD pair sees a modest uptick in today's trading, marking a 0.04% increase to 1.08760. This minor change occurs within the context of a 4-hour chart that reveals the currency pair is hovering just below a critical pivot point of 1.08784. The immediate resistance levels are set at 1.09014, 1.09273, and 1.09513, suggesting potential upper boundaries for the pair's short-term movements. Conversely, support levels are established at 1.08512, 1.08250, and 1.07906, offering a buffer against downward price action.

The Relative Strength Index (RSI) stands at 60, indicating a balanced yet slightly bullish momentum. The 50-day Exponential Moving Average (EMA) closely tracks the current price at 1.08519, reinforcing the significance of the pivot point as a determinant of directional bias.

A notable chart pattern is the EUR/USD's struggle to breach the 1.08784 level, marked by a descending trendline. A successful breakout above this level could signal a shift towards bullish territory and dictate the pair's near-term price trajectory.

The EUR/USD's technical perspective is cautiously optimistic, with a proposed buying strategy initiating at a stop of 1.08812. Targeted profits are advised at 1.09074, with a stop loss placed at 1.08609 to manage risk. This setup suggests a tactical approach, banking on a potential breakout for gains while remaining mindful of underlying support and resistance dynamics.

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EUR/USD

Daily Trade Ideas

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

By LonghornFX Technical Analysis
Feb 2, 2024
Eurusd

Daily Price Outlook 

- EUR/USD edges up to 1.08760, facing key resistance at 1.09014 with the pivot point at 1.08784 as a crucial marker.

- RSI at 60 and 50-day EMA at 1.08519 hint at a tentative bullish momentum, awaiting a breakout for confirmation.

- Recommended entry at 1.08812, targeting 1.09074 for profits, underscores a strategic position for potential upward movement.

The EUR/USD pair sees a modest uptick in today's trading, marking a 0.04% increase to 1.08760. This minor change occurs within the context of a 4-hour chart that reveals the currency pair is hovering just below a critical pivot point of 1.08784. The immediate resistance levels are set at 1.09014, 1.09273, and 1.09513, suggesting potential upper boundaries for the pair's short-term movements. Conversely, support levels are established at 1.08512, 1.08250, and 1.07906, offering a buffer against downward price action.

The Relative Strength Index (RSI) stands at 60, indicating a balanced yet slightly bullish momentum. The 50-day Exponential Moving Average (EMA) closely tracks the current price at 1.08519, reinforcing the significance of the pivot point as a determinant of directional bias.

A notable chart pattern is the EUR/USD's struggle to breach the 1.08784 level, marked by a descending trendline. A successful breakout above this level could signal a shift towards bullish territory and dictate the pair's near-term price trajectory.

The EUR/USD's technical perspective is cautiously optimistic, with a proposed buying strategy initiating at a stop of 1.08812. Targeted profits are advised at 1.09074, with a stop loss placed at 1.08609 to manage risk. This setup suggests a tactical approach, banking on a potential breakout for gains while remaining mindful of underlying support and resistance dynamics.

EUR/USD Price Chart - Source: Tradingview
EUR/USD Price Chart - Source: Tradingview

EUR/USD - Trade Ideas

Entry Price – Buy Stop 1.08812

Take Profit – 1.09074

Stop Loss – 1.08609

Risk to Reward – 1: 1.18

Profit & Loss Per Standard Lot = +$262/ -$203

Profit & Loss Per Mini Lot = +$26/ -$20

EUR/USD

Daily Trade Ideas

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

By LonghornFX Technical Analysis
Jan 31, 2024
Eurusd

Daily Price Outlook 

- EUR/USD nudges lower to $1.08193, underpinned by a subtle bearish momentum.

- Resistance and support levels established, with technical indicators leaning towards a bearish outlook.

- Strategy suggests a sell trade with specified entry and exit points, aligned with current market conditions.

The Euro against the US Dollar (EUR/USD) on January 31 showcases a subdued tone, edging down by 0.24% to trade at $1.08193. The pair's current stance suggests a cautious approach from the market participants as they navigate through key technical thresholds.

The EUR/USD is now operating just below the pivot point of $1.0801, with immediate resistance observed at $1.0864. Should bullish sentiment prevail, the pair may encounter further friction at $1.0922 and $1.0988. Conversely, should selling pressure intensify, the pair finds itself backed by immediate support at $1.0747, with subsequent layers of potential buoyancy at $1.0684 and $1.0617.

The technical indicators provide a more granular perspective; the Relative Strength Index (RSI) lingers at 40, reflecting a bearish bias in the current market sentiment. The Moving Average Convergence Divergence (MACD) analysis reveals a value of 0.00010 above its signal of -0.00105, hinting at a possible shift in momentum to the upside, albeit faintly.

The 50-day Exponential Moving Average (EMA) at $1.08320, slightly above the current price, may act as an inflection point for future price movements.

In summary, the EUR/USD appears to be tentatively bearish with a recommendation to consider short positions below $1.08361. The advised take-profit level rests at $1.07838, with a stop-loss suggested at $1.08687 to contain potential trading risks.

EUR/USD Price Chart - Source: Tradingview
EUR/USD Price Chart - Source: Tradingview

EUR/USD - Trade Ideas

Entry Price – Sell Below 1.08361

Take Profit – 1.07838

Stop Loss – 1.08687

Risk to Reward – 1: 1.6

Profit & Loss Per Standard Lot = +$523/ -$326

Profit & Loss Per Mini Lot = +$52/ -$32

EUR/USD

Technical Analysis

EUR/USD Price Analysis – Jan 31, 2024

By LonghornFX Technical Analysis
Jan 31, 2024
Eurusd

Daily Price Outlook 

The EUR/USD pair extended its downward trend, reaching around the $1.0815 level for the day. However, the bearish momentum in the pair can be associated with the disappointing German Retail Sales, which dropped 1.6% MoM in December, compared to a 2.5% decline in November. This decline in German retail sales added downward pressure on the shared currency, affecting the EUR/USD pair.

Furthermore, the broad-based US dollar strength, supported by positive US data, contributed to the bearish bias. The data indicated an unexpected increase in US job openings to 9.02 million in December. Moreover, the ongoing geopolitical conflicts in the Middle East and China's economic challenges played a significant role in bolstering the safe-haven appeal of the US Dollar, contributing to losses in the EUR/USD pair.

EUR/USD Faces Downward Pressure Amidst Weak German Retail Sales and Strong US Dollar

It's important to highlight that the previously released JOLTS report unexpectedly showed a rise in US job openings to 9.02 million in December. This suggests a robust job market, making it less likely for the Federal Reserve to cut interest rates in the first quarter. This, coupled with global uncertainties from conflicts in the Middle East and China's economic challenges, is boosting the safe-haven US Dollar, putting pressure on the EUR/USD pair. \

Investors are now cautious ahead of the Federal Open Market Committee's (FOMC) monetary policy decision, set to be announced later today.

German Retail Sales Decline and ECB Rate Uncertainty Impact Euro

At home, Germany's retail sales faced a setback in December, dropping by 1.6% compared to the previous month, following a 2.5% decline in November. This is worse than experts predicted, as they expected a 0.7% increase. Looking at year-on-year figures, retail sales in Germany fell by 1.7% in December, compared to a 2.4% decline in November.

These numbers indicate a slowdown in economic activity in the Eurozone's major player. As in result, the shared currency is facing pressure against the US Dollar, with the EUR/USD pair showing a modest decrease, trading at 1.0808. In contrast to this, the losses in the EUR/USD pair could be short-lived amid the uncertainty about when the European Central Bank (ECB) will start lowering interest rates.

EUR/USD Price Chart - Source: Tradingview
EUR/USD Price Chart - Source: Tradingview

EUR/USD - Technical Analysis

The Euro against the US Dollar (EUR/USD) on January 31 showcases a subdued tone, edging down by 0.24% to trade at $1.08193. The pair's current stance suggests a cautious approach from the market participants as they navigate through key technical thresholds.

The EUR/USD is now operating just below the pivot point of $1.0801, with immediate resistance observed at $1.0864. Should bullish sentiment prevail, the pair may encounter further friction at $1.0922 and $1.0988. Conversely, should selling pressure intensify, the pair finds itself backed by immediate support at $1.0747, with subsequent layers of potential buoyancy at $1.0684 and $1.0617.

The technical indicators provide a more granular perspective; the Relative Strength Index (RSI) lingers at 40, reflecting a bearish bias in the current market sentiment. The Moving Average Convergence Divergence (MACD) analysis reveals a value of 0.00010 above its signal of -0.00105, hinting at a possible shift in momentum to the upside, albeit faintly.

The 50-day Exponential Moving Average (EMA) at $1.08320, slightly above the current price, may act as an inflection point for future price movements.

In summary, the EUR/USD appears to be tentatively bearish with a recommendation to consider short positions below $1.08361. The advised take-profit level rests at $1.07838, with a stop-loss suggested at $1.08687 to contain potential trading risks.

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EUR/USD

Daily Trade Ideas

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

By LonghornFX Technical Analysis
Jan 29, 2024
Eurusd

Daily Price Outlook 

- EUR/USD at 1.08454, showing a marginal downtrend; pivot at 1.0805.

- Resistance levels at 1.0865, 1.0920, 1.0985; support at 1.0749, 1.0682, 1.0620.

- RSI at 43, MACD crossing above signal line, 50-day EMA at 1.0846; trend neutral to slightly bearish.

The Euro against the US Dollar (EUR/USD) is exhibiting a nuanced trading pattern as of January 29. The pair is trading at 1.08454, reflecting a slight decrease of 0.10%. The technical landscape on the 4-hour chart reveals critical levels that could guide the pair’s short-term trajectory.

The pivot point is established at 1.0805, serving as a barometer for the pair's immediate trend. Above this level, resistance is seen at 1.0865, 1.0920, and 1.0985, each posing potential hurdles for upward price movement. Conversely, support levels are identified at 1.0749, 1.0682, and 1.0620, which could offer a buffer against any downward pressure.

The Relative Strength Index (RSI) stands at 43, indicating a slight bearish momentum without veering into oversold territory. The Moving Average Convergence Divergence (MACD) is currently at -0.00013 with its signal line at -0.00098, suggesting the beginning of a potential upward trend as the MACD line is crossing above the signal line. The 50-day Exponential Moving Average (EMA) closely mirrors the current price at 1.0846, providing a near-term reference for trend assessment.

In conclusion, the EUR/USD pair currently presents a predominantly neutral trend with a slight inclination towards bearishness. Traders considering a position might look at a sell limit at 1.08560, with a take-profit target set at 1.07886, and a stop loss at 1.08867. This setup reflects the pair's stability, yet cautions against potential downward shifts.

EUR/USD Price Chart - Source: Tradingview
EUR/USD Price Chart - Source: Tradingview

EUR/USD - Trade Ideas

Entry Price – Sell Limit 1.08560

Take Profit – 1.07886

Stop Loss – 1.08867

Risk to Reward – 1: 2

Profit & Loss Per Standard Lot = +$674/ -$307

Profit & Loss Per Mini Lot = +$67/ -$30

EUR/USD

Technical Analysis

EUR/USD Price Analysis – Jan 29, 2024

By LonghornFX Technical Analysis
Jan 29, 2024
Eurusd

Daily Price Outlook 

During the European trading hours on Monday, the EUR/USD currency pair continued its downward trend and remained well offered around the $1.0846 level. However, the reason for this decline can be attributed to the renewed strength of the US Dollar, which was supported by rising geopolitical tensions in the Middle East. In the meantime, Investors are expected to closely monitor the Federal Open Market Committee (FOMC) meeting scheduled for Wednesday. On the other side, European Central Bank (ECB) decided to keep key interest rates steady, which may contribute to a stable or slightly positive impact on the EUR/USD pair.

European Central Bank's Monetary Policy Challenges for EUR/USD

As we mentioned above that the European Central Bank (ECB) recently decided to keep key interest rates unchanged because of lower inflation in December. ECB President Christine Lagarde is worried about stagflation in the Eurozone in the last quarter of 2023 and the possibility of an economic slowdown. Lagarde stressed that the ECB will make decisions based on data at each meeting.

Moreover, ECB council member Klaas Knot mentioned the need for evidence of slowing wage growth before considering interest rate cuts. However, many people in the market expect interest rates to be cut, which could affect the Euro and create a challenge for the EUR/USD pair.

Therefore, the ECB's decision to maintain interest rates, coupled with concerns about stagflation and the cautious stance on rate cuts, might pose challenges for the EUR/USD pair, influencing it negatively amid market expectations.

Potential Impact of FOMC Decisions and Germany's GDP on EUR/USD Pair

Furthermore, the Federal Open Market Committee (FOMC) kept the interest rate steady in December 2024, and predictions suggest it will remain between 5.25% and 5.50% in the January meeting. Traders initially thought there was an 88% chance of a rate cut in March, but that dropped to 48.2%.

On Tuesday, Germany's Gross Domestic Product (GDP) is expected to decrease by 0.3% for Q4. The FOMC meeting this week may not change rates, but what Chairman Jerome Powell says in the press conference could affect the USD. If Powell sounds less optimistic, the USD might weaken against other currencies, which traders will be watching.

Therefore, the FOMC's maintained interest rate and the possibility of a cut in March, coupled with Germany's expected GDP contraction, could impact the EUR/USD pair. Powell's dovish comments may weaken the USD against other currencies, drawing traders' attention.

EUR/USD Price Chart - Source: Tradingview
EUR/USD Price Chart - Source: Tradingview

EUR/USD - Technical Analysis

The Euro against the US Dollar (EUR/USD) is exhibiting a nuanced trading pattern as of January 29. The pair is trading at 1.08454, reflecting a slight decrease of 0.10%. The technical landscape on the 4-hour chart reveals critical levels that could guide the pair’s short-term trajectory.

The pivot point is established at 1.0805, serving as a barometer for the pair's immediate trend. Above this level, resistance is seen at 1.0865, 1.0920, and 1.0985, each posing potential hurdles for upward price movement. Conversely, support levels are identified at 1.0749, 1.0682, and 1.0620, which could offer a buffer against any downward pressure.

The Relative Strength Index (RSI) stands at 43, indicating a slight bearish momentum without veering into oversold territory. The Moving Average Convergence Divergence (MACD) is currently at -0.00013 with its signal line at -0.00098, suggesting the beginning of a potential upward trend as the MACD line is crossing above the signal line. The 50-day Exponential Moving Average (EMA) closely mirrors the current price at 1.0846, providing a near-term reference for trend assessment.

In conclusion, the EUR/USD pair currently presents a predominantly neutral trend with a slight inclination towards bearishness. Traders considering a position might look at a sell limit at 1.08560, with a take-profit target set at 1.07886, and a stop loss at 1.08867. This setup reflects the pair's stability, yet cautions against potential downward shifts.

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EUR/USD

Technical Analysis

EUR/USD Price Analysis – Jan 26, 2024

By LonghornFX Technical Analysis
Jan 26, 2024
Eurusd

Daily Price Outlook 

The EUR/USD currency pair failed to halt its downward trend and remained well offered around the 1.0850 level. The reason for its decline can be attributed to a combination of factors, including the dovish sentiment surrounding the European Central Bank (ECB) and a bullish US Dollar (USD), which kept the EUR/USD pair under pressure. However, the better-than-expected US Gross Domestic Product (GDP) data on Thursday contributed to the US Dollar's upward trend, which exerted pressure on the EUR/USD pair.

ECB's Hint at Summer Rate Cut Sparks Speculation and Euro Weakness Against the Dollar

It's worth noting that the European Central Bank (ECB) has decided to keep its interest rates steady for the third time in a row. In a statement, ECB President Christine Lagarde hinted at the possibility of a rate cut in the summer. Market watchers are predicting a potential 50 basis point cut by June. Investors anticipate a 50 basis point cut from the ECB by June. Currently, rate swaps indicate an anticipated total of 140 basis points in rate cuts from the ECB by the end of 2024. In simpler terms, the ECB is considering reducing interest rates, and experts predict it might happen in the coming months.

Therefore, the news of a potential rate cut by the ECB has led to speculation in the market. This anticipation may weaken the euro (EUR) against the US dollar (USD), as lower interest rates often make a currency less attractive to investors.

Janet Yellen's Optimistic Outlook Boosts USD on Strong Q4 GDP, Paving the Way for Potential Currency Strength Ahead

Furthermore, US Treasury Secretary Janet Yellen pointed out that the strong 3.3% growth in Q4 GDP, surpassing expectations, is due to increased spending and productivity. She assured that there's no indication of a threat to the US economy's smooth performance. Janet Yellen's positive comments on the solid Q4 GDP growth suggest economic stability. This might boost the US Dollar (USD) against the Euro (EUR) as investors look for the reliability of the USD.

Looking ahead, the upcoming data on Personal Consumption Expenditures (PCE) Price Index, set to be released on Friday. Meanwhile. the upbeat GDP numbers have already lifted the US Dollar Index (DXY), and if this keeps going, we might see the dollar getting stronger against other currencies.

EUR/USD Price Chart - Source: Tradingview
EUR/USD Price Chart - Source: Tradingview

EUR/USD - Technical Analysis

The EUR/USD pair on January 26th is experiencing a slight decline, down 0.04%, with the exchange rate currently standing at $1.0843. This marginal downward movement reflects a market in search of direction amidst varying economic signals from both sides of the Atlantic. The pivot point, an indicator of intraday turning points, is set at $1.0782, which the pair has been hovering above, suggesting a tenuous balance between bullish and bearish forces.

The currency pair confronts immediate resistance at $1.0840, with subsequent barriers at $1.0905 and $1.0963 that may serve as ceilings to upward price aspirations. Should the pair embark on a downward trajectory, it would find support at $1.0718, with further potential floors at $1.0651 and $1.0588 that could halt declines and stabilize the price.

The RSI, situated at 40, indicates a lack of strong momentum either way, leaning slightly towards oversold conditions. The MACD line, barely distinguishable at -0.0004, is just above its signal line at -0.0010, hinting at a potential but not yet established upward momentum. The 50-day EMA at $1.0861 serves as a reference for the pair's short-to-medium-term trend, currently suggesting a recent crossover below this average.

Considering the current technical indicators, the overarching trend for EUR/USD could be deemed as neutral with bearish undertones. A prudent trading approach might involve setting a sell limit order at 1.08507, with a target take profit at 1.07907 and a stop loss at 1.08857, seeking to capitalize on any forthcoming downward movement while mitigating risk.

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EUR/USD

Daily Trade Ideas

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

By LonghornFX Technical Analysis
Jan 26, 2024
Eurusd

Daily Price Outlook 

- EUR/USD edges down to $1.0843, a slight 0.04% decrease.

- Resistance is identified at $1.0840, with further levels at $1.0905 and $1.0963; support begins at $1.0718 down to $1.0588.

- The current technical setup suggests a neutral to bearish bias, with a sell limit suggested at 1.08507, targeting a modest profit with controlled risk exposure.

The EUR/USD pair on January 26th is experiencing a slight decline, down 0.04%, with the exchange rate currently standing at $1.0843. This marginal downward movement reflects a market in search of direction amidst varying economic signals from both sides of the Atlantic. The pivot point, an indicator of intraday turning points, is set at $1.0782, which the pair has been hovering above, suggesting a tenuous balance between bullish and bearish forces.

The currency pair confronts immediate resistance at $1.0840, with subsequent barriers at $1.0905 and $1.0963 that may serve as ceilings to upward price aspirations. Should the pair embark on a downward trajectory, it would find support at $1.0718, with further potential floors at $1.0651 and $1.0588 that could halt declines and stabilize the price.

The RSI, situated at 40, indicates a lack of strong momentum either way, leaning slightly towards oversold conditions. The MACD line, barely distinguishable at -0.0004, is just above its signal line at -0.0010, hinting at a potential but not yet established upward momentum. The 50-day EMA at $1.0861 serves as a reference for the pair's short-to-medium-term trend, currently suggesting a recent crossover below this average.

Considering the current technical indicators, the overarching trend for EUR/USD could be deemed as neutral with bearish undertones. A prudent trading approach might involve setting a sell limit order at 1.08507, with a target take profit at 1.07907 and a stop loss at 1.08857, seeking to capitalize on any forthcoming downward movement while mitigating risk.

EUR/USD Price Chart - Source: Tradingview
EUR/USD Price Chart - Source: Tradingview

EUR/USD - Trade Ideas

Entry Price – Sell Limit 1.08507

Take Profit – 1.07907

Stop Loss – 1.08857

Risk to Reward – 1: 1.7

Profit & Loss Per Standard Lot = +$600/ -$350

Profit & Loss Per Mini Lot = +$60/ -$35

EUR/USD