Over the past several months, the EUR/USD pair has experienced substantial volatility due to a range of factors, including the European Central Bank (ECB) and Federal Reserve monetary policies, inflationary pressures, and global economic uncertainty. Following a period of significant bullishness, the pair has started to show signs of exhaustion, with recent price action suggesting that the uptrend is weakening.
The EUR/USD has been testing key resistance levels, and while it has managed to push higher at times, it has failed to sustain these advances. With lower highs and increasing signs of price fatigue, there is growing evidence that the market is ready for a pullback or even a reversal in the near term.
To assess the potential for a short trade, it’s important to understand the critical levels that will determine the direction of the market.
Resistance Levels: The 1.07000 area stands out as a significant resistance zone. This level has proven difficult for the Euro to break above consistently, and each time it approaches this area, it seems to lose momentum. This resistance has been tested several times in the past, and traders are watching closely to see if the market can break above it.
Support Levels: On the downside, the 1.04179 level is of particular interest. This level has been a key support point in recent months, and a break below this level could confirm the start of a significant downward move. Given the current market conditions, if the pair fails to hold above the support, it could easily target the 1.04179 zone.
The EUR/USD has been testing key resistance levels, and while it has managed to push higher at times, it has failed to sustain these advances. With lower highs and increasing signs of price fatigue, there is growing evidence that the market is ready for a pullback or even a reversal in the near term.
To assess the potential for a short trade, it’s important to understand the critical levels that will determine the direction of the market.
Resistance Levels: The 1.07000 area stands out as a significant resistance zone. This level has proven difficult for the Euro to break above consistently, and each time it approaches this area, it seems to lose momentum. This resistance has been tested several times in the past, and traders are watching closely to see if the market can break above it.
Support Levels: On the downside, the 1.04179 level is of particular interest. This level has been a key support point in recent months, and a break below this level could confirm the start of a significant downward move. Given the current market conditions, if the pair fails to hold above the support, it could easily target the 1.04179 zone.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.