EUR/USD Analysis Summary Today
- General Trend: Bearish.
- Today’s Support Points for EUR/USD: 1.1600 – 1.1560 – 1.1480.
- Today’s Resistance Points for EUR/USD: 1.1680 – 1.1730 – 1.1800.
EUR/USD Trading Signals:
- Buy EURUSD from the support level of 1.1550, target 1.1780, and stop 1.1470.
- Sell EURUSD from the resistance level of 1.1760, target 1.1500, and stop 1.1820.
Technical Analysis of EUR/USD Today:
Based on recent trading, the EUR/USD pair has formed a double bottom pattern on the short-term chart, suggesting the possibility of a reversal from the previous bearish trend. Across trading company platforms, the Euro/Dollar pair appears to be testing the neckline resistance at the key psychological level of 1.1600, and a breakout of this area could confirm a shift in direction. If the neckline is successfully broken, the EUR/USD pair could rise by the same height as the double bottom formation. However, the price may encounter resistance from the nearby descending trend line and the dynamic pivot point of the 100 Simple Moving Average (SMA), which could trigger a pullback before the upward trend gains momentum.
At the same time, the indicated area of interest on the chart shows where sellers could take a stand, but continued buying pressure outside this area suggests buyers are ready to take control. A strong break above the descending trend line and the moving averages could pave the way for a move towards higher levels. Regarding moving averages, the 100-day SMA remains below the 200-day SMA, indicating that the path of least resistance is still bearish, or that downward momentum may continue. However, the gap between the indicators appears to be narrowing, suggesting a potential bullish crossover is on the horizon. Furthermore, this confirms increasing buyer interest.
The Stochastic indicator for EUR/USD performance is hovering near the overbought zone, reflecting strong upward momentum at the moment. A decline of the oscillator from this area could signal buyer exhaustion, potentially leading to a rebound. On the other hand, if the Stochastic remains high, it would indicate that buyers are still in control. The Relative Strength Index (RSI) is also trending higher, so the price may continue to follow the same approach with buyers having the upper hand. However, the oscillator has limited room to climb before reaching the overbought zone, meaning that the upward momentum may start to fade soon.
Trading Tips:
Keep in mind that the rebound in the Euro/Dollar price still lacks strong momentum to confirm its occurrence, and the 1.1800 resistance will remain the most crucial to confirm an upward shift. Therefore, carefully monitor the factors influencing the currency exchange rate.
Dollar Retreats After Federal Reserve Signals
According to Forex currency market trading, the U.S. dollar fell after the Federal Reserve’s “Beige Book” report boosted expectations for further U.S. interest rate cuts. The report showed slowing economic growth, persistently weak labor market conditions, and rising prices for input costs. Indicators of tariff implementation varied, with some companies keeping selling prices unchanged, while others reported an increase in import costs.
According to expert views on the report, the “Beige Book” generally reinforces the view that the economic outlook has not changed much since the Fed’s September meeting. They suggest that this keeps the Fed on track to cut U.S. interest rates by 25 basis points later this month, and likely again in December.
According to reliable trading company platforms, the U.S. Dollar Index (DXY) fell by 0.2% to 98.596 after recording a one-week low of 98.417 on Wednesday.
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