FX.co ★ EUR/USD

EURUSD Short-Term Outlook: There is discussion about the possibility of the EUR/USD pair price fluctuating in the near future. We look forward to trading next week. Looking at the daily chart for the EUR/USD pair, bulls may try to break through the 1.16583 level (6/8 reversal pattern) sometime next week. If this level can be maintained as support, the price could rise towards the resistance level of 1.17803 (7/8 stop-loss reversal), as shown on the chart. If the correction fails, after rebounding from 1.16583, the price could fluctuate between 1.16583 and 1.15363, and the bearish trend could continue until the end of the year. For a further rise, a clear breakout of 1.16583 is needed, and we should keep an eye on the key support lines shown in Figure 9. The trading range for the euro is wide, with a high of around 1.16323 and a low of 1.15723. A price below 1.15723 would favor the bears. The daily candlestick chart showed a slight increase of over 30 pips, exceeding expectations, but the recent weakness of the US dollar is unusual and may be influenced by negative sentiment following the Federal Reserve's interest rate decision. However, the European Central Bank's stance and the European economic situation remain challenging.

The 4-hour chart suggests that the price nearly reached its upper limit before uncertainty signals appeared, and that it may be pushed back to the midpoint around 1.15623. The EUR/USD pair is trading in a narrow range, indicating increasing downward momentum. Factors such as the stochastic indicator moving towards oversold territory cast doubt on the bullish scenario and support fundamental analysis suggesting a decline in the pair. In this scenario, bearish bias and expectations that the price will fall below 1.15323 are reinforcing bearish sentiment. Selling pressure on the currency pair may intensify.