EUR/USD Analysis Summary Today
- General Trend: Upward.
- Today's EUR/USD Support Points: 1.1260 – 1.1190 – 1.1100, respectively.
- Today's EUR/USD Resistance Points: 1.1335 – 1.1400 – 1.1465, respectively.
EUR/USD Trading Signals:
- Sell EUR/USD from the resistance level of 1.1420, with a target of 1.1280 and a stop loss of 1.1510.
- Buy EUR/USD from the support level of 1.1180, with a target of 1.1450 and a stop loss of 1.1050.
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In our technical analyses for the EUR/USD pair, we had indicated that the recent stability near its highest levels since January 2022, when it tested the 1.1473 resistance level, might be followed by a period of calm before the reaction to the results of important US economic data and the announcement of the European Central Bank's policies. According to licensed trading platform data, EUR/USD trading has retreated to the support level of 1.1263 and is stable around it at the time of writing the analysis. The downward correction does not signify a change in the overall bullish direction of the EUR/USD price, but rather a preparation for what's more important.
Today, EUR/USD trading will focus on the reaction to the announcement of the Eurozone inflation figures, which will be released at 11:00 AM Cairo time. These figures will have implications for the future policy of the European Central Bank, which will announce its decisions on Thursday. Also. US retail sales figures will then be released at 2:30 PM Cairo time. Finally, another important event is the anticipated remarks from US Federal Reserve Chairman Jerome Powell at 7:30 PM Cairo time.
EUR/USD Technical Analysis Today:
Dear reader, please consider that the overall trend for the EUR/USD pair remains bullish, with the outlook remaining positive, particularly due to the ramifications of current US policies regarding tariffs and inflation on the runaway valuations that still prevail across major US equity markets. According to currency analysts' expectations, Euro gains will also reduce inflation in the Eurozone, and the ECB is likely to adopt a more accommodative policy next Thursday, which could alleviate the rise of the EUR/USD pair, if not lead to a temporary setback. Now, we have surpassed the 1.1215 level (September 24 high) and 1.1275 (2023 high), and the next target is the 1.15 area, which was the highest level before the invasion of Ukraine on February 22nd.
Technical indicators, including the 14-day RSI, MACD, and Stochastic, continue to confirm a breakout above overbought levels. If the week's events do not stimulate the euro's gains, expect immediate profit-taking.
Signals and Forecasts for the Euro Dollar:
Bullish Scenario: The EUR/USD path remains within the bullish trend, and returning to the 1.1400 resistance is an important catalyst for the strength of the bulls' control, thus preparing for stronger bullish breakouts. This requires the Euro to receive more and more impetus, and we must not take risks and monitor the developments of global trade wars to anticipate more price fluctuations and high volatility, which may affect investment plans. So far, the buying momentum for EUR/USD is strong.
Sell EUR/USD Signals: Selling may be a preferable strategy for EUR/USD from the resistance zone of 1.1410 and 1.1500, with targets at 1.1330 and 1.1250, and a stop-loss position at the resistance level of 1.1585.
Bearish Scenario: The EUR/USD pair may abandon its current bullish direction if it returns to the vicinity of the psychological level of 1.10, which could increase selling pressure towards the next important support at 1.0880 to confirm the bearish reversal of the overall trend.
Buy EUR/USD Signals: Buying may be a preferable strategy for EUR/USD from the support zone of 1.1170 and 1.1080, respectively, with a stop-loss position at 1.0975 and recommendation targets at the resistance levels of 1.1280 and 1.1440, respectively.
Decisively, don't forget that the EUR/USD pair recorded its best level in more than three years, with US currency, bond, and stock markets deteriorating amid the escalating trade dispute between Washington and Beijing, and market sentiment towards everything American declining.
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