Technical Analysis of EUR/USD: Bulls Seek Recovery Amid Persistent Bearish Pressure
Technical Market Outlook
The EUR/USD pair has set a new local low at 1.0724, with bulls attempting a recovery to 1.0780. However, bearish pressure remains substantial, making this bounce limited and weak. A crucial resistance for the bulls, potentially altering the market dynamic, lies at 1.0896. A sustained move above this mark could shift the short-term trend towards bullishness. For bears, the immediate targets are at 1.0697 and 1.0675.
On the H4 chart, momentum stays weak and negative, nearing the 50 level. Key data releases to watch today include the ZEW Economic Sentiment from Germany during the London session and US CPI data in the US session.
Weekly Pivot Points
Pivot Points are crucial in technical analysis for identifying potential trend reversals, support, and resistance levels.
- WR3: 1.1033
- WR2: 1.0964
- WR1: 1.0862
- Weekly Pivot: 1.0764
- WS1: 1.0691
- WS2: 1.0622
- WS3: 1.0520
Trading Outlook
The EUR/USD pair retreated from the 61% Fibonacci retracement at 1.0963 following a false breakout. The market sharply reversed, with the price now 2.70% lower. To sustain the upward trend, a weekly close above this level is essential, indicating a potential long-term bullish reversal for the Euro.
EUR/USD Intraday Indicator Analysis
- 16 out of 22 technical indicators suggest a Buy signal, 6 are Neutral, and none indicate Sell.
- 14 out of 18 moving averages favor Buy, while 4 signal Sell.
Sentiment Scoreboard
The prevailing market sentiment is bullish (59% bulls vs. 41% bears). This trend is consistent with last week's sentiment (53% bulls vs. 47% bears) and the sentiment over the past three days (55% bulls vs. 45% bears).
Useful Links
Important Reminder
The begginers in forex trading need to be very careful when making decisions about entering the market. Before the release of important reports, it is best to stay out of the market to avoid being caught in sharp market fluctuations due to increased volatility. If you decide to trade during the news release, then always place stop orders to minimize losses.
Without placing stop orders, you can very quickly lose your entire deposit, especially if you do not use money management and trade large volumes. For successful trading, you need to have a clear trading plan and stay focues and disciplined. Spontaneous trading decision based on the current market situation is an inherently losing strategy for a scalper or daytrader.
