FX.co ★ EUR/USD

Euro/Dollar Market Analysis: A Closer Look As the week wraps up, the euro/dollar exchange rate is holding steady. Initially, I expected the price to move toward the 1.1550 range based on technical analysis, but it didnt quite reach that target. Instead, we saw a pullback from the 1.1585 level. The key resistance lies at 1.1635, which is playing a significant role, yet the price hasn’t moved there either. Currently, the price hovers around 1.1605. The target for the week was around 1.1725, but the movement remains sideways. There's a major level at 1.1065, but its unlikely to reach that point soon. Looking at the overall picture, the market is moving within a wide sideways range between 1.1550 and 1.1720. According to technical indicators, there is an accumulation phase in a bullish rhythm. The market appears to be in a wave (B) impulse from 1.1725. The plan suggests a corrective wave (C) back to 1.1550, after which a reversal might occur. Observing the daily timeframe, buying activity is noticeable in the 1.1550 and 1.1600 areas. A confirmation for entering a long position might be found around 1.1550 or even lower, as there is a clear accumulation of purchases.

On the H1 interval, the market picture is quite clear. There are stop orders from sellers in the 1.1635 range, but the main level of interest is 1.1556. The market is overbought and overheated, indicating a likely pullback below 1.1600, leading to a downward correction. The price action signals a decline as it approaches the upper boundary near 1.1590. This suggests that the market might soon experience some corrective movement. In the current scenario, buying isnt advisable since the market is at local highs and overheated. However, if the price pulls back from 1.1575 or 1.1590, buying could be reconsidered. If the price drops toward the local support level of 1.1550, it may present a buying opportunity. Keeping these factors in mind will help in making informed trading decisions.