EUR/USD Key Levels: Potential Breakdown or Recovery?This analysis focuses on the EUR/USD daily chart, highlighting key levels and potential scenarios based on technical and fundamental factors.
1. Resistance:
• The 1.0350 level acts as a critical resistance unless major positive Eurozone data surprises occur. A break above this could lead to a medium-term recovery.
2. Short-Term Outlook (1-2 Weeks):
• Likely to test the 1.0200 support, with the potential for an extension toward 1.0150. This is driven by strong U.S. economic data and DXY (Dollar Index) momentum.
3. Medium-Term Outlook (1-3 Months):
• Below 1.0150, a drop toward parity (1.0000) becomes possible, especially if the DXY rises above 110.
4. Breakout Scenarios:
• Bearish: A sustained break below 1.0150 could target 1.0000.
• Bullish: A move above 1.0450 may lead to a recovery toward 1.0600, particularly if the Fed signals a dovish pivot.
This idea takes into account technical analysis, supported by macroeconomic fundamentals. Trade cautiously, and use clearly defined stop-loss levels to manage risk effectively.
