EUR/USD Analysis Summary Today
- Overall Trend: Strongly Bullish.
- Today's EUR/USD Support Levels: 1.1490 – 1.1400 – 1.1320.
- Today's EUR/USD Resistance Levels: 1.1620 – 1.1680 – 1.1770.
EUR/USD Trading Signals:
- Buy EUR/USD from the support level of 1.1385 with a target of 1.1560 and a stop-loss at 1.1290.
- Sell EUR/USD from the resistance level of 1.1640 with a target of 1.1400 and a stop-loss at 1.1710.
EUR/USD Technical Analysis Today:
Based on recent trades, the EUR/USD pair continues to trade within a well-defined ascending channel, which has guided price action over the past few weeks. The EUR/USD pair is currently testing a resistance level near the upper boundary at 1.1540. The currency pair has demonstrated resilience by maintaining its upward trajectory along the lower trendline support of the channel.
Overall, technical analysis reveals that the EUR/USD pair recently approached the top of the channel after bouncing off support levels, indicating sustained upward momentum. However, approaching the resistance level might lead to some profit-taking or consolidation before the next directional movement begins. Fibonacci retracement levels provide key reference points for potential pullback scenarios. Should the EUR/USD pair retrace from its current levels, initial support might appear around the 38.2% retracement level at 1.1532, followed by the more significant 50% level at 1.1502.
A deeper correction could extend towards the 61.8% Fibonacci level at 1.1473, which closely coincides with dynamic support levels.
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Trading Tips:
The EUR/USD trend remains upward, but it may face some volatility from the announcement of US inflation figures and the US Federal Reserve's policy announcements this week, in addition to the extent of investor risk aversion.
At the same time, the moving average formation supports positive expectations, with shorter-term averages positioned above longer-term averages, confirming that the stronger path remains upward. These dynamic levels are trending higher and may provide support for any short-term weakness, reinforcing the lower boundary of the ascending channel. From a momentum perspective, the Stochastic indicator appears to be approaching the overbought region, suggesting that upward pressure might reach exhaustion levels. This situation indicates the possibility of sellers emerging soon, which could lead to a pullback within the channel's framework.
The RSI (Relative Strength Index) readings show the oscillator fluctuating between neutral and slightly bullish, allowing for further upside before reaching overbought territory. However, any decline from current levels suggests the potential for a corrective phase to begin. Overall, the technical outlook for EUR/USD remains positive within the ascending channel structure, though some consolidation or a slight pullback would not be surprising given its proximity to resistance and momentum indicators.
Today's EUR/USD trading will be influenced by important economic data, led by the ZEW German Economic Sentiment Index reading, with expectations for a recovery to 34.8 from the previous reading of 25.2. This release is due at 12:00 PM Egypt time. Later the same day, the EUR/USD will react to the announcement of US retail sales figures, due at 3:30 PM Egypt time. These figures confirm consumer confidence and, consequently, spending.
European Stock Prices Rise Despite Global Concerns:
During yesterday's trading session, European stocks closed significantly higher across stock trading platforms, ending five consecutive sessions of losses. Recently, the easing of concerns that hostilities between Israel and Iran would impede the global economy contributed to higher global stock prices. Recent reports indicated that Tehran is prepared to resume nuclear talks with the United States, signalling its readiness to de-escalate exchanges with Israel, which bolstered hopes that the conflict would not negatively impact global economic activity and energy prices. Financial markets are also preparing for key monetary policy decisions this week, led by the Bank of England, the Swiss National Bank, the Swedish Central Bank, and the Norwegian Central Bank, in addition to the US Federal Reserve and the Bank of Japan outside of Europe.
According to trading activity, bank stocks led the gains as bond yields fell, with shares of Santander, BNP Paribas, Intesa Sanpaolo, and UniCredit rising between 2.5% and 3%. Technology stocks also saw increases, with Adyen and Nokia shares jumping between 2% and 3%. Finally, Kering's stock rose by 12% on expectations that Luca de Meo, CEO of Renault, would join the luxury goods giant.
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