EUR/USD Analysis Summary Today
Overall Trend: Remains Bearish.
Support Levels for EUR/USD Today: 1.1510 – 1.1460 – 1.1390.
Resistance Levels for EUR/USD Today: : 1.1590 – 1.1630 – 1.1680.
EUR/USD Trading Signals:
Buy Scenario:
Enter from support level 1.1465
Target: 1.1530
Stop Loss: 1.1420.
Sell Scenario:
Entry: the resistance level of 1.1630
Target: 1.1510
Stop Loss: 1.1680
Technical Analysis of EUR/USD Today
Following yesterday's holiday, liquidity has returned to the markets. At the same time, risk sentiment remains fragile amid escalating tensions in the Middle East. Investors are closely monitoring developments after Donald Trump threatened to target Iranian bridges and oil facilities if the Strait of Hormuz is not reopened by Tuesday evening. This geopolitical ambiguity is keeping traders cautious and benefiting safe-haven currencies.
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This situation is negative for the EUR/USD pair. It attempted a rebound, but gains were limited to the 1.1571 level, before quickly resuming its broader downward trend to the 1.1525 support level at the time of writing.
According to the technical analysis on the daily chart, breaking the 1.1500 support level reinforces the bearish bias. Technical indicators confirm this, with the 14-day Relative Strength Index (RSI) below the 50 neutral line, supporting the bears' push for the currency pair to lower levels until the indicator reaches oversold territory. This could happen quickly if the pair falls to the 1.1400 support level, as occurred in the middle of last month's trading. The MACD indicator and moving averages still support the strength of the downtrend in the coming days.
To break the overall bearish trend and initiate a technical upward reversal, bulls must stabilize above the 1.1640 resistance.
Fundamental Analysis EUR/USD:
The economic focus for today, Tuesday, remains on the Eurozone Investor Confidence Index (Sentix), which is expected to reflect the impact of regional conflict and energy price shocks on investor sentiment. It will be released at 10:30 AM Egypt time. Prior to that, the Eurozone Services Purchasing Managers' Index (PMI) readings will be released. However, given the weak liquidity and general geopolitical concerns, this indicator is unlikely to generate a significant market reaction.
On the US side, the durable goods orders reading will be released at 2:30 PM Egypt time.
From a monetary policy perspective, this pair reflects the ongoing divergence between the European Central Bank (ECB) and the US Federal Reserve. Inflationary pressures in the Eurozone have prompted ECB officials to hint at a possible interest rate hike, which strengthens the euro. Meanwhile, the US Federal Reserve Chairman has indicated that the bank is continuously monitoring the impact of rising oil prices on inflation and will either tighten or wait at the appropriate time. Overall, this divergence in monetary policy expectations continues to influence the exchange rate of this currency pair.
Trading Advice:
Dear TradersUp trader, the Euro will remain under constant pressure as long as the conflict in the Middle East persists and oil prices continue to rise, which negatively impacts the Eurozone
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