Technical Overview
Support Levels:
• 1.1550 – Serves as a key short-term floor, evident from last week’s consolidation.
• 1.1500 – Provides a broader downside buffer if the 1.1550 level is breached.
Resistance Levels:
• 1.1700 – Acts as the near-term ceiling; a break above this point would confirm continued bullish momentum.
• 1.1765 – Represents a secondary upside target should 1.1700 be cleared.
Momentum Indicators:
The overall trend remains positive, with MACD and Stochastic indicators in overbought territory but still supported by an upward bias.
Markets are currently liquid, but consolidation is likely unless fresh catalysts emerge.
Fundamental Highlights
The U.S. dollar is experiencing downward pressure due to subdued economic data and increasing expectations for rate cuts. This environment has supported EUR/USD’s upward movement. For this week, the release of U.S. CPI data and signals from the Federal Reserve are anticipated to play crucial roles in determining the pair’s direction.
Weekly Outlook & Strategy
Bullish Scenario:
• Trigger: Sustained trading above the 1.1620–1.1650 zone.
• Target 1: 1.1700, representing the near-term resistance.
• Target 2: 1.1765, the upper boundary of the current channel.
• Note: A breakout above 1.1700 would reinforce bullish momentum, creating space for further gains toward higher resistance levels.
Bearish Scenario:
• Trigger: A move below 1.1550.
• Target 1: 1.1500, marking key downside support.
• Target 2: 1.1380, a level indicating a deeper correction.
• Note: A drop below 1.1550 may signal a reversal, potentially leading to broader consolidation or correction.