EUR/USD Price Analysis – Aug 30, 2024
Daily Price Outlook
During the European trading session, the EUR/USD currency pair extended its downward trend and remained well-offered around the 1.1069 level.
This decline can be attributed to the bullish US dollar, which gained traction due to upwardly revised US Q2 GDP figures, reducing the chances of a more significant Federal Reserve rate cut.
Furthermore, the previously released soft German inflation data has bolstered expectations for another ECB interest rate cut in September.
Meanwhile, the Eurozone flash annual Harmonized Index of Consumer Prices (HICP) declined as expected in August, which typically weakens the EUR by suggesting lower inflation pressures and potentially prompting the ECB to maintain or adopt a dovish stance.
Strong US Economic Data and Lower Rate Cut Expectations Boost USD, Weigh on EUR/USD
On the US front, the broad-based US dollar is gaining strength due to strong economic data. The US Gross Domestic Product (GDP) grew by 3.0% annually in the second quarter, surpassing the initial estimate of 2.8%. Besides this, Initial Jobless Claims for the week ending August 24 fell to 231K from 233K, coming in below the expected 232K.
This economic strength has reduced expectations for a significant Federal Reserve rate cut in September. The US Dollar Index (DXY), which tracks the dollar against six major currencies, is trading just below a fresh weekly high of 101.58 as investors await the US Personal Consumption Expenditure (PCE) Price Index for July.
Currently, financial markets are confident that the Fed might start reducing interest rates in September, but there is uncertainty about the extent of the cut. According to the CME FedWatch tool, there's a 33% chance of a 50-basis points cut, while others expect a 25-basis points reduction.
The likelihood of a larger rate cut has decreased slightly since the BEA reported a higher-than-expected GDP growth rate of 3% for the second quarter.
Therefore, the strong US economic data and reduced rate cut expectations have strengthened the US dollar, leading to a decline in the EUR/USD pair. The higher GDP growth and lower jobless claims support a firmer dollar, weakening the euro.
Eurozone Inflation Data and Economic Weakness Pressure EUR/USD
Another factor that kept the EUR/USD pair lower is the Eurozone’s inflation data for August, which shows a decline. The flash annual Harmonized Index of Consumer Prices (HICP) dropped to 2.2% from 2.6% in July, mainly due to lower energy prices.
Core HICP, which excludes volatile items like food and energy, rose by 2.8%, slower than the previous 2.9%. This weaker inflation data is likely to boost speculation that the European Central Bank (ECB) will cut interest rates again in September and potentially more later in the year.
Market expectations for an ECB rate cut increased after data showed that inflation in Germany, the Eurozone’s largest economy, fell to 2% for the first time in over three years. Additionally, Germany's economy contracted by 0.1% in the second quarter, suggesting a technical recession.
Other Eurozone countries, like France and Spain, also reported significant inflation declines. Analysts, such as Carsten Brzeski from ING, believe that the combination of fading inflation and weak growth makes a strong case for more rate cuts.
EUR/USD - Technical Analysis
The EUR/USD pair is currently trading at $1.10757, down 0.01% as it hovers just above a key support level at $1.10695. The market sentiment appears cautious, with the Relative Strength Index (RSI) at 40, signaling a slight bearish bias in the short term.
This reflects some downward pressure as the pair remains below the 50-day Exponential Moving Average (EMA) of $1.11355, indicating that the bears might still have some control.
The immediate pivot point at $1.11005 serves as a critical juncture for traders. A decisive break above this level could signal a potential recovery, with immediate resistance at $1.11395 and further targets at $1.11892.
On the downside, if the price slips below $1.10695, the next support lies at $1.10337, with additional support levels at $1.09995 and $1.09685. These levels are crucial for maintaining the current range, and a breach could open the door to more significant declines.
Given the current technical setup, traders might consider entering a long position above $1.10697, with a take profit target near $1.11188. A stop loss placed around $1.10430 could help mitigate downside risk if the support fails to hold.
Overall, EUR/USD is trading within a tight range, with the possibility of a breakout depending on how the price interacts with the $1.11005 pivot point. As the market awaits further directional cues, the pair’s movement around these key levels will be pivotal in determining the next trend.
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EUR/USD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- EUR/USD hovers near $1.10695 support, with RSI at 40 indicating slight bearish pressure.
- A break above $1.11005 pivot could target $1.11395 and $1.11892 resistance levels.
- Downside risks increase below $1.10695, with next support at $1.10337 and $1.09995.
The EUR/USD pair is currently trading at $1.10757, down 0.01% as it hovers just above a key support level at $1.10695. The market sentiment appears cautious, with the Relative Strength Index (RSI) at 40, signaling a slight bearish bias in the short term.
This reflects some downward pressure as the pair remains below the 50-day Exponential Moving Average (EMA) of $1.11355, indicating that the bears might still have some control.
The immediate pivot point at $1.11005 serves as a critical juncture for traders. A decisive break above this level could signal a potential recovery, with immediate resistance at $1.11395 and further targets at $1.11892.
On the downside, if the price slips below $1.10695, the next support lies at $1.10337, with additional support levels at $1.09995 and $1.09685. These levels are crucial for maintaining the current range, and a breach could open the door to more significant declines.
Given the current technical setup, traders might consider entering a long position above $1.10697, with a take profit target near $1.11188. A stop loss placed around $1.10430 could help mitigate downside risk if the support fails to hold.
Overall, EUR/USD is trading within a tight range, with the possibility of a breakout depending on how the price interacts with the $1.11005 pivot point. As the market awaits further directional cues, the pair’s movement around these key levels will be pivotal in determining the next trend.
EUR/USD - Trade Ideas
Entry Price – Buy Above 1.10697
Take Profit – 1.11188
Stop Loss – 1.10430
Risk to Reward – 1: 1.8
Profit & Loss Per Standard Lot = +$491/ -$267
Profit & Loss Per Mini Lot = +$49/ -$26
EUR/USD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- Immediate Support: The $1.1150 level is crucial, with the 50-day EMA at $1.1117 providing additional support.
- Pivot Point Resistance: $1.1201 serves as the immediate resistance, with further barriers at $1.1232 and $1.1266.
- Bearish Sentiment: The RSI at 46 suggests room for further downside, with a break below $1.1150 likely leading to additional losses.
The Euro (EUR/USD) is currently trading at $1.11369, down 0.17% on the day, as the pair struggles to maintain momentum above key support levels.
On the 4-hour chart, the immediate support lies at $1.1150, which aligns closely with the 50-day Exponential Moving Average (EMA) at $1.1117.
A decisive break below this support could accelerate the pair’s decline, potentially leading to a test of the next support levels at $1.1107 and $1.1072.
These levels have previously acted as strong support and are critical in determining the short-term direction of the EUR/USD.
On the upside, the pivot point at $1.1201 serves as the immediate resistance. The pair would need to clear this level to challenge the next resistance at $1.1232, followed by $1.1266.
These resistance levels represent significant barriers that the Euro must overcome to reverse the current bearish sentiment.
The RSI indicator is currently at 46, suggesting that there is room for further downside before reaching oversold conditions.
The overall technical outlook remains bearish, with the Euro struggling to gain traction above $1.1150. The 50-day EMA will be a crucial level to watch, as a break below it could signal further losses.
Conversely, a sustained move above the $1.1201 pivot point could provide the necessary momentum for a recovery.
EUR/USD - Trade Ideas
Entry Price – Sell Below 1.11503
Take Profit – 1.10988
Stop Loss – 1.11798
Risk to Reward – 1: 1.7
Profit & Loss Per Standard Lot = +$515/ -$295
Profit & Loss Per Mini Lot = +$51/ -$29
EUR/USD Price Analysis – Aug 28, 2024
Daily Price Outlook
During the European trading session, the EUR/USD currency pair struggled to halt its downward trend, remaining under pressure around the 1.1126 level and hitting an intra-day low of 1.1122.
The decline can be attributed to the weaker Euro currency as investors anticipate that the European Central Bank (ECB) will cut interest rates again in September.
However, the ECB began reducing interest rates in June, with the expectation that inflation in the Eurozone will return to the bank's target of 2% by 2025.
Meanwhile, the ECB decided to keep its key borrowing rates unchanged in July, concerned that aggressive rate cuts could reignite inflationary pressures. Furthermore, a mild recovery in the US Dollar has further pressured the EUR/USD currency pair.
Euro Weakens on Rate Cut Expectations and Economic Uncertainty
On the EUR front, the Euro is underperforming against its major peers as investors expect the European Central Bank (ECB) to cut interest rates again in September.
The ECB began lowering rates in June, aiming for inflation in the Eurozone to hit 2% by 2025. Despite this, the ECB kept rates unchanged in July due to concerns that further cuts might reignite inflation.
Recent data, including the Eurozone flash HCOB PMI for August and Q2 Negotiated Wage Rates, show an uncertain economic outlook and easing wage pressures.
This has led to expectations that the ECB will reduce rates by 25 basis points in September, with possible additional cuts in the last quarter of the year.
Investors are waiting for the flash Harmonized Index of Consumer Prices (HICP) data for Germany and the Eurozone, set to be released on Thursday and Friday, to get more clues on future rate cuts.
Therefore, the anticipated ECB rate cut and uncertain economic outlook contribute to a weaker Euro, likely exerting downward pressure on the EUR/USD pair. Traders' focus on upcoming HICP data could further influence the pair's movement.
US Dollar Rebounds Amid Rate Cut Speculations and Upcoming Inflation Data
On the US front, the major currency pair drops as the US Dollar (USD) recovers from a recent year-to-date low.
The US Dollar Index (DXY) has risen to around 100.80 from a low of 100.50. This rebound may be short-lived, with market participants viewing it as a potential selling opportunity.
The outlook for the USD remains uncertain, largely due to expectations that the Federal Reserve (Fed) will cut interest rates in September.
Traders are divided on whether the Fed will implement a 25 basis points (bps) or a larger 50 bps rate cut. According to the CME FedWatch tool, there is a 34.5% chance of a 50-bps cut, while the rest expect a 25-bps reduction.
Investors are awaiting the US core Personal Consumption Expenditure (PCE) inflation data for July, due on Friday. If inflation shows signs of declining, it could lead to a more aggressive rate cut by the Fed; otherwise, expectations for a large cut may fade.
EUR/USD - Technical Analysis
The Euro (EUR/USD) is currently trading at $1.11369, down 0.17% on the day, as the pair struggles to maintain momentum above key support levels.
On the 4-hour chart, the immediate support lies at $1.1150, which aligns closely with the 50-day Exponential Moving Average (EMA) at $1.1117.
A decisive break below this support could accelerate the pair’s decline, potentially leading to a test of the next support levels at $1.1107 and $1.1072.
These levels have previously acted as strong support and are critical in determining the short-term direction of the EUR/USD.
On the upside, the pivot point at $1.1201 serves as the immediate resistance. The pair would need to clear this level to challenge the next resistance at $1.1232, followed by $1.1266.
These resistance levels represent significant barriers that the Euro must overcome to reverse the current bearish sentiment. The RSI indicator is currently at 46, suggesting that there is room for further downside before reaching oversold conditions.
The overall technical outlook remains bearish, with the Euro struggling to gain traction above $1.1150.
The 50-day EMA will be a crucial level to watch, as a break below it could signal further losses. Conversely, a sustained move above the $1.1201 pivot point could provide the necessary momentum for a recovery.
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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
EUR/USD Price Analysis – Aug 26, 2024
Daily Price Outlook
During the European trading session, the EUR/USD currency pair failed to maintain its upward trend and turned bearish around the 1.1166 level, hitting an intra-day low of 1.1163.
The downward trend can be attributed to growing speculation that the European Central Bank (ECB) will reduce interest rates again in the September meeting. The ECB is also expected to deliver one more interest rate cut in the last quarter of this year.
This undermined the shared currency and contributed to the EUR/USD pair's losses. On the other hand, the bearish US dollar, driven by the dovish Fed, was seen as a key factor that limited any additional losses in the EUR/USD pair.
ECB Rate Cut Speculation and Economic Uncertainty Weigh on EUR/USD
On the EUR front, market expectations for ECB interest rate cuts in September have increased due to rising uncertainty over the Eurozone's economic outlook and slowing wage growth.
Although economic activity in the Eurozone showed unexpected growth in August, according to the flash HCOB PMI report, this was mainly driven by strong demand in France related to the upcoming Olympics in Paris.
Economists consider this as a temporary boost rather than a sign of long-term improvement.
Adding to the uncertainty, ECB Chief Economist Philip Lane emphasized the need for restrictive monetary policy at the Jackson Hole Symposium, acknowledging some progress in inflation control but warning that success is not guaranteed.
Investors are now closely watching the preliminary German and Eurozone Harmonized Index of Consumer Prices (HICP) data for August, set to be released on Thursday and Friday.
These figures will offer more insight into future interest rate decisions, with Eurozone annual headline and core HICP expected to have slowed to 2.3% and 2.8%, respectively.
Meanwhile, the IFO Institute's report on Monday showed that the German Business Climate, Current Assessment, and Expectations for August exceeded expectations but were still lower than July’s figures. This data did not provide any significant boost to the EUR/USD pair.
Therefore, the news heightened concerns over the Eurozone's economic outlook and potential ECB rate cuts, leading to a bearish impact on the EUR/USD pair. Despite some positive data, the uncertainty limited any significant upward movement for the euro.
EUR/USD - Technical Analysis
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.
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EUR/USD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- Pivot Point: Key level at $1.11092; watch for price action around this point.
- RSI: Neutral at 58; could shift based on upcoming moves.
- 50 EMA: Support at $1.10510; maintaining a bullish outlook above this level.
The EUR/USD is currently holding steady at $1.11136, showing a modest increase of 0.01% for the day. The pair is navigating a relatively narrow trading range, with the pivot point resting at $1.11092, acting as a critical level for determining the short-term direction.
As we look at the 4-hour chart, the immediate resistance is marked at $1.11644, followed by higher levels at $1.11910 and $1.12238. On the downside, immediate support can be found at $1.10769, with further support levels at $1.10491 and $1.10194.
The technical indicators offer a mixed picture, with the RSI sitting at 58, signaling neutral momentum that could sway in either direction depending on the upcoming price action.
Meanwhile, the 50-day EMA at $1.10510 is providing solid support, indicating that the pair is maintaining a bullish bias above this level.
If the EUR/USD manages to break above the $1.11644 resistance, we could see a continuation of the upward trend, potentially driving the price toward the $1.11910 level.
However, if the pair fails to hold above the $1.11092 pivot point, a decline toward the $1.10769 support level could be on the cards. Traders should be cautious, as a break below $1.10769 might trigger a deeper correction.
EUR/USD - Trade Ideas
Entry Price – Buy Above 1.11091
Take Profit – 1.11644
Stop Loss – 1.10752
Risk to Reward – 1: 1.6
Profit & Loss Per Standard Lot = +$553/ -$339
Profit & Loss Per Mini Lot = +$55/ -$33
EUR/USD Price Analysis – Aug 23, 2024
Daily Price Outlook
During the European trading session, the EUR/USD currency pair made a modest recovery, edging higher to near 1.1113, hitting the intra-day high of 1.1132 level.
This upward movement was largely driven by a weaker US dollar, which dropped as traders shifted their focus to Federal Reserve (Fed) Chair Jerome Powell’s anticipated speech at the Jackson Hole Symposium. The US dollar resumed its recent weakness following a brief recovery, amid caution ahead of Powell's remarks.
Meanwhile, the expectations that the European Central Bank (ECB) might cut interest rates further in September also contributed to the euro's gains. However, increasing expectations of further ECB rate cuts could limit the upside potential for the EUR/USD pair.
Impact of Federal Reserve's Anticipated Guidance on EUR/USD Amid Weak US Dollar
Despite the stronger-than-expected US S&P Global PMI report for August, which showed a robust expansion in the services sector and a slight contraction in manufacturing, the US dollar edged lower.
The market anticipates that Jerome Powell will provide fresh guidance on interest rates and the US economic outlook during his Jackson Hole speech. Federal Reserve officials have hinted that a rate cut in September may be appropriate if economic data continues to align with expectations.
This dovish sentiment is likely to influence the EUR/USD pair, potentially weakening the dollar further against the euro if Powell’s remarks suggest a more accommodative monetary policy stance.
Anticipated ECB Rate Cuts and Their Impact on EUR/USD Outlook
On the EUR front, the European Central Bank is widely anticipated to cut interest rates again in September, driven by uncertainties over the Eurozone’s economic outlook and lower wage growth.
The recent flash Eurozone HCOB PMI report for August showed improved business activity, but this positive signal may be short-lived due to weak foreign demand, especially in Germany. The decline in Q2 Negotiated Wage Rates, which eased inflation concerns, has bolstered expectations for more ECB rate cuts.
As such, while the EUR/USD pair benefits from a weaker US dollar, the potential for additional ECB rate cuts could limit further gains. Traders are now looking ahead to Powell’s speech for fresh direction and weighing the implications of ongoing economic developments on the EUR/USD outlook.
EUR/USD - Technical Analysis
The EUR/USD is currently holding steady at $1.11136, showing a modest increase of 0.01% for the day. The pair is navigating a relatively narrow trading range, with the pivot point resting at $1.11092, acting as a critical level for determining the short-term direction.
As we look at the 4-hour chart, the immediate resistance is marked at $1.11644, followed by higher levels at $1.11910 and $1.12238. On the downside, immediate support can be found at $1.10769, with further support levels at $1.10491 and $1.10194.
The technical indicators offer a mixed picture, with the RSI sitting at 58, signaling neutral momentum that could sway in either direction depending on the upcoming price action.
Meanwhile, the 50-day EMA at $1.10510 is providing solid support, indicating that the pair is maintaining a bullish bias above this level.
If the EUR/USD manages to break above the $1.11644 resistance, we could see a continuation of the upward trend, potentially driving the price toward the $1.11910 level.
However, if the pair fails to hold above the $1.11092 pivot point, a decline toward the $1.10769 support level could be on the cards. Traders should be cautious, as a break below $1.10769 might trigger a deeper correction.
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EUR/USD Price Analysis – Aug 21, 2024
Daily Price Outlook
During the European trading session, the EUR/USD currency pair has faced downward pressure, slipping from its earlier highs as the US dollar stages a rebound.
The pair, which had previously held above the 1.1133 support level, is now trading near 1.1109. This decline highlights a shift in market dynamics, with the US dollar strengthening against the Euro.
US Dollar Strengthens Despite Expected Fed Rate Cuts, Pressuring EUR/USD
On the US front, the recent strengthening of the US dollar comes despite anticipated rate cuts by the Federal Reserve.
Typically, rate cuts by the Fed lead to a weaker greenback; however, the current rebound is driven by broader market factors and speculation about future economic conditions.
The US Dollar Index (DXY) has climbed to approximately 101.50, reflecting heightened investor confidence in the US economy despite expected monetary easing.
Therefore, the US dollar's strength and rising US Dollar Index (DXY) pressure the EUR/USD pair, causing it to decline.
Increased investor confidence in the US economy, despite expected Fed rate cuts, boosts the dollar and weighs on the euro.
Euro Faces Pressure from Mixed Economic Data and Geopolitical Uncertainties
On the Euro side, the European Central Bank (ECB) has been cautious about committing to aggressive rate cuts, which has provided some support to the Euro. However, recent data from the Eurozone has painted a mixed picture.
The ECB's reluctance to cut rates aggressively stems from persistent inflationary pressures in the Eurozone and slower growth in key economies like Germany.
Although slower wage growth in Germany has eased some pressure on the ECB, overall Eurozone economic performance remains uneven.
The Euro has faced challenges from a combination of weaker-than-expected economic data and ongoing geopolitical uncertainties.
Market participants are also keeping an eye on upcoming Eurozone data, including the HCOB Purchasing Managers’ Index (PMI) and Q2 Negotiated Wage Rates, which will provide further insights into the economic outlook for the Eurozone.
EUR/USD - Technical Analysis
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.
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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