EUR/USD Analysis Summary Today
- Overall Trend: Within a descending channel formation.
- Today's Euro/Dollar Support Levels: 1.1180 – 1.1100 – 1.1060.
- Today's Euro/Dollar Resistance Levels: 1.1280 – 1.1360 -1.1400.
EUR/USD Trading Signals:
- Buy EUR/USD from the support level of 1.1130 with a target of 1.1360 and a stop-loss at 1.1050.
- Sell EUR/USD from the resistance level of 1.1340 with a target of 1.1160 and a stop-loss at 1.1410.
EUR/USD Technical Analysis Today:
A downward price gap affected the EUR/USD currency pair at the start of trading this important week, with losses extending to the 1.1183 support level, the lowest for the pair in a month, before stabilizing around the 1.1220 level at the time of writing this analysis. The Forex market was affected at the beginning of the US inflation week by signals from trade talks between China and the United States. Trump confirmed "significant progress" in US-China trade talks – but a final agreement remains uncertain.
According to the movement of technical indicators, EUR/USD trading on the daily timeframe chart indicates the formation of a reverse descending channel, and the 1.1130 support will remain important for strong and continuous bear control over the currency pair's direction. With the recent losses, the 14-day Relative Strength Index (RSI) strongly pushed to break the midline, confirming the bearish shift. It has more room for larger losses before reaching the oversold zone. At the same time, the MACD lines confirm the downward movement, with the blue line significantly preceding the orange line.
Top Forex Brokers
Trading Tips:
Keep in mind that the EUR/USD trend is entering a new downward phase, which will be confirmed soon. Monitor the factors influencing the forex market to find the best trading opportunities.
The EUR/USD currency pair is not anticipating any important economic data during today's Monday trading session, neither from the Eurozone nor the United States. Accordingly, the currency pair will move within narrow ranges until confirmation of trade agreements between global economies to avoid wider trade wars that threaten the future of global economic recovery. On the economic front, US inflation figures will remain the most prominent focus for currency traders this week.
The Future of the US/China Trade Agreement:
In this regard, US President Donald Trump enthusiastically tweeted about the recent trade discussions with China in Switzerland, describing them as "friendly but constructive" and noting "significant progress." While this optimism from Trump can be viewed positively, leading market participants to anticipate positive outcomes for stocks and risk-sensitive currencies, investors and traders should exercise caution. On the one hand, Trump's optimistic tone may reflect genuine achievements, which could lead to significant benefits for American companies and reduce trade tensions. If this development proves true with concrete details, it will have a significant positive impact on market sentiment. However, it can be reasonably assumed that a trade agreement has not yet been finalized, as such a crucial achievement would likely be accompanied by a definitive announcement or confirmation from other official channels.
Historically, optimistic statements from leaders – especially Trump – have sometimes preceded difficult negotiations that did not immediately lead to final agreements. Therefore, Trump's message may primarily aim to shape positive market sentiment rather than indicate a completely finalized agreement.
Therefore, investors and traders in financial markets should anticipate further negotiations and detailed announcements from US and Chinese officials. Until a firm and solid agreement is reached, maintaining prudent risk management remains essential amid potentially volatile trade headlines.
Ready to trade our EUR/USD daily forecast? Here’s a list of some of the top forex brokers in Europe to check out.