EUR/USD Sunday Market Review
Current Market Position
The EUR/USD pair is currently trading at 1.05678, positioned at the premium side of its recent trading range. This level represents a significant recovery from the markdown initiated on November 13th, which established the range's parameters.
Recent Price Action Analysis
The trading range has been defined by:
Technical Structure
The price action has demonstrated a clear range-bound behavior with strategic liquidity sweeps. The recent upward movement from the lower displacement suggests accumulation at lower levels, with buyers showing conviction in defending the range's floor.
Key Technical Levels
Upside targets:
Correlation Analysis with US Dollar Index
The Dollar Index presents a potentially bearish setup:
Further DXY support levels on bearish continuation:
Technical Patterns
The US Dollar Index is exhibiting a head and shoulders pattern on the daily timeframe, although Friday's green close suggests some hesitation in the bearish momentum. This pattern, if confirmed, would align with the bullish EUR/USD scenario.
Outlook and Strategy
The technical setup suggests a bullish bias for EUR/USD with the following considerations:
Risk Considerations
Traders should monitor:
Conclusion
The technical structure supports a bullish bias for EUR/USD with clear upside targets at 1.09464 and 1.12136. This aligns with the potential bearish structure in the US Dollar Index, although proper risk management should be maintained given the recent dollar strength.
The EUR/USD pair is currently trading at 1.05678, positioned at the premium side of its recent trading range. This level represents a significant recovery from the markdown initiated on November 13th, which established the range's parameters.
Recent Price Action Analysis
The trading range has been defined by:
- Upper bound: Current levels around 1.05678
- Lower bound: 1.04802
- Notable displacement: Liquidity sweep on November 22nd
- Recovery: Strong positive reaction leading into November 30th
Technical Structure
The price action has demonstrated a clear range-bound behavior with strategic liquidity sweeps. The recent upward movement from the lower displacement suggests accumulation at lower levels, with buyers showing conviction in defending the range's floor.
Key Technical Levels
Upside targets:
- Primary resistance: 1.09464 (coinciding with 200 EMA)
- Extended target: 1.12136 (longer-term projection)
Correlation Analysis with US Dollar Index
The Dollar Index presents a potentially bearish setup:
- Current resistance: 108.071
- Initial support target: 105.970
- Critical breakdown level: 105.347
Further DXY support levels on bearish continuation:
- Major support: 103.376
- Extended targets: 101.856 and 100.000
Technical Patterns
The US Dollar Index is exhibiting a head and shoulders pattern on the daily timeframe, although Friday's green close suggests some hesitation in the bearish momentum. This pattern, if confirmed, would align with the bullish EUR/USD scenario.
Outlook and Strategy
The technical setup suggests a bullish bias for EUR/USD with the following considerations:
- The pair has shown resilience at lower levels with strong buying pressure
- The projected move above the 200 EMA could trigger additional momentum
- The potential USD weakness, as indicated by the head and shoulders pattern, provides fundamental support for the bullish EUR/USD scenario
Risk Considerations
Traders should monitor:
- The 105.347 level on the Dollar Index as a key pivot
- Any failure to breach the 200 EMA could lead to range continuation
- Friday's positive close on the Dollar Index might indicate temporary strength
Conclusion
The technical structure supports a bullish bias for EUR/USD with clear upside targets at 1.09464 and 1.12136. This aligns with the potential bearish structure in the US Dollar Index, although proper risk management should be maintained given the recent dollar strength.
I hope you’ve had a great day and that your screens were green. 🌟
Happy Trading, and see you next time! 💹✨
Happy Trading, and see you next time! 💹✨
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.
I hope you’ve had a great day and that your screens were green. 🌟
Happy Trading, and see you next time! 💹✨
Happy Trading, and see you next time! 💹✨
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.