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EUR/USD Analysis: Will We Witness a Bearish Reversal Trend?

By Mahmoud Abdallah
Mahmoud has been working fulltime in the Foreign Exchange markets for 12 years. Offers his analysis, articles and recommendations at the most renewed Arabic websites specialized in the global financial markets, and his experience gained a lot of interest among Arab traders. Works on providing technical analysis, market news, free signals and more with follow up for at least 12 hours a day, and aims to simplify forex trading and the concept of trading for his audience.

EUR/USD Analysis Summary Today

  • General Trend: Downwardly Tilt with a Break of 1.13
  • Today's EUR/USD Support Levels: 1.1270, 1.1200, and 1.1135 respectively.
  • Today's EUR/USD Resistance Levels: 1.1375, 1.1420, and 1.1500 respectively.
    EUR/USD Analysis Today 01/05: Bearish Reversal Trend -Chart

EUR/USD Trading Signals:

  • Buy EUR/USD today from the support level of 1.1235 with a target of 1.1400 and a stop-loss at 1.1120.
  • Sell EUR/USD today from the resistance level of 1.1420 with a target of 1.1200 and a stop-loss at 1.1500.

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EUR/USD Technical Analysis Today:

The success of the current EUR/USD selling operations in moving below the 1.1270 support level will give bears more momentum to form a bearish channel opposite to the EUR/USD trend, thus preparing for stronger downward breakouts. After the recent decline, the 14-day RSI is approaching the midline, which supports the downward shift. The MACD is moving in the same direction, and positive US jobs figures expected by the end of this week's trading will further support the bearish move. The expected EUR/USD range today is between support at 1.1300 and resistance at 1.1385 until either bulls or bears gain momentum to move on strong fundamentals.

Trading Tips:

Dear TradersUp website follower, keep in mind that the euro's recovery to an upward path awaits more positive stimulus, and I warned that the absence of this would bring selling operations, as is happening now.

The EUR/USD currency pair today will be affected by a new round of important US economic releases. Today's headlines include the US weekly jobless claims, which will be announced at 03:30 PM Egypt time, followed by the announcement of the US ISM Manufacturing PMI at 05:00 PM Egypt time. There are no significant European releases today. EUR/USD trading will also react to any new developments regarding the global trade wars led by the US administration, and the Eurozone is not far from the targets of these trade wars.

Recently, the US dollar has recovered against other major currencies amid optimism regarding global trade negotiations and sentiment. Investors grew more optimistic that tariff pressures may have peaked under US President Donald Trump, following his comments yesterday that hinted at potential trade agreements with India, Japan, and South Korea, and expressed confidence in a potential deal with China. This rally came despite new data showing the US economy unexpectedly contracted by 0.3% year-on-year in the first quarter, its first negative US growth in three years. Furthermore, the contraction was driven by a surge in imports and a sharp slowdown in consumer spending.

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Mahmoud Abdallah
Mahmoud has been working fulltime in the Foreign Exchange markets for 12 years. Offers his analysis, articles and recommendations at the most renewed Arabic websites specialized in the global financial markets, and his experience gained a lot of interest among Arab traders. Works on providing technical analysis, market news, free signals and more with follow up for at least 12 hours a day, and aims to simplify forex trading and the concept of trading for his audience.

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