EUR/USD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- Resistance Levels: Key hurdles at $1.06071, $1.06457, and $1.06811 for sustained bullish momentum.
- Support Levels: Immediate at $1.05269, followed by $1.04983 and $1.04597.
- Trend Indicators: RSI at 61 supports a bullish bias, while the 50-day EMA at $1.05161 bolsters dynamic support.
EUR/USD is trading at $1.05697, up 0.17% for the session, as the pair shows signs of sustained bullish momentum above the $1.05590 pivot point. Immediate resistance is positioned at $1.06071, aligning with the next key target of $1.06457.
A breakout above these levels could drive further gains toward $1.06811, signaling continued optimism in the euro.
On the downside, immediate support rests at $1.05269, followed by $1.04983 and $1.04597, with the 50-day EMA at $1.05161 providing dynamic support to the pair. A breach below these levels could shift the sentiment bearish, with increased selling pressure likely if $1.04983 fails to hold.
The RSI stands at 61, indicating moderate bullish momentum without nearing overbought territory, which leaves room for additional upside. The price action suggests a favorable outlook for buyers if the pair sustains its position above $1.05590.
Traders may look to enter long positions above $1.05583, targeting $1.06070, while maintaining a stop-loss at $1.05210 for prudent risk management.
EUR/USD - Trade Ideas
Entry Price – Buy Above 1.05583
Take Profit – 1.06070
Stop Loss – 1.05210
Risk to Reward – 1: 1.3
Profit & Loss Per Standard Lot = +$487/ -$373
Profit & Loss Per Mini Lot = +$48/ -$37
EUR/USD Price Analysis – Nov 27, 2024
Daily Price Outlook
During the European trading session, the EUR/USD pair continued its upward momentum, reaching an intra-day high of 1.0539. The pair strengthened as the US Dollar weakened ahead of key US economic data, including the Personal Consumption Expenditure (PCE) Price Index, Durable Goods Orders, Personal Spending for October, revised Q3 GDP growth estimates, and Initial Jobless Claims for the week ending November 22, all set to be released later in the North American session.
Despite the gain in EUR/USD pair, the overall outlook for the shared currency remains cautious as European Central Bank (ECB) officials have expressed concern about the Eurozone’s economic growth, both now and in the future, which could limit further strength for the Euro.
Uncertainty Over ECB's Economic Outlook and Rate Cuts Weigh on EUR/USD Pair
On the EUR front, the outlook for the Euro remains uncertain as the European Central Bank (ECB) is concerned about the Eurozone's economic growth. ECB policymakers are increasingly worried about the future, with some even fearing that inflation could fall below the bank's target.
On Tuesday, ECB policymaker Mario Centeno, who is also the head of Portugal's central bank, warned that the Eurozone economy is stagnating, and the risks are mainly on the downside. He also mentioned that the threat of tariffs, especially from the US under Trump, adds to these risks. Centeno cautioned that inflation could fall short of the ECB's target, suggesting that the bank should not wait too long before cutting interest rates.
On the other hand, ECB executive board member Isabel Schnabel has a more positive view on inflation, stating that the risk of inflation undershooting the target is not a major concern. She also hinted that if inflation remains in line with expectations, the ECB could gradually move toward a more neutral monetary policy.
Market participants are divided on the possibility of a rate cut in December, with some expecting a 50 basis point reduction. Investors are now waiting for upcoming inflation data, which could offer more clarity on the ECB's next move.
Hence, the uncertainty around the ECB’s economic outlook and potential rate cuts could weigh on the Euro, limiting its gains against the US Dollar. However, the possibility of a rate cut in December might provide some support for the EUR/USD pair.
US Dollar Weakens Amid Gradual Tariff Plans and Fed Rate Cut Expectations, Supporting EUR/USD
On the US front, the broad-based US dollar has recently lost some strength after hitting a two-year high last Friday. The US Dollar Index (DXY), which tracks the Greenback against six major currencies, dropped to a fresh weekly low around 106.35. This drop came after comments from Scott Bessent, a hedge fund manager nominated by President-elect Donald Trump for Treasury Secretary. Bessent stated that any tariffs imposed would be implemented gradually, and the budget deficit would be reduced without causing high inflation, easing some market fears.
Investors are now focused on the upcoming PCE inflation data, which is the Federal Reserve’s preferred measure for making policy decisions. Economists expect the headline PCE inflation to rise to 2.3% year-over-year in October, up from 2.1% in September. The core PCE, which excludes food and energy prices, is expected to rise by 2.8%, slightly higher than the previous month's 2.7%.
Therefore, the US dollar's recent weakness, driven by comments on gradual tariff implementation and expectations of a potential Fed rate cut, could support the EUR/USD pair. If PCE data signals lower inflation, it may reduce pressure on the Fed to hike rates.
EUR/USD – Technical Analysis
EUR/USD is trading at $1.04850, down 0.03%, as the pair struggles to hold above key technical levels. On the 4-hour chart, the pivot point at $1.05203 serves as a significant hurdle, with immediate resistance at $1.05625 and further resistance at $1.06071.
A break above these levels could indicate a reversal of the recent bearish sentiment and open the door for further gains.
On the downside, immediate support lies at $1.04378, with additional levels at $1.03854 and $1.03489. The pair is currently hovering near its 50 EMA, which sits at $1.04776. This level is providing short-term support, but a sustained break below it could reinforce bearish momentum.
The RSI is at 49, reflecting a neutral bias but leaning slightly toward oversold territory. This suggests that while the pair is under pressure, it may find temporary relief if buyers step in near current support levels.
The outlook for EUR/USD depends heavily on its ability to regain traction above the $1.05203 pivot point. A failure to break this level could see the pair retest support at $1.04378, potentially triggering further declines. Conversely, a move above $1.05625 would indicate bullish momentum, shifting the focus toward higher resistance levels.
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EUR/USD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- Resistance Levels: $1.04901, $1.05625, $1.06071.
- Support Levels: $1.03854, $1.03489.
- Momentum Indicators: RSI at 50 reflects neutral conditions, leaving room for further directional moves.
The EUR/USD pair is trading at $1.04778, down 0.61%, as the dollar strengthens amid broader risk-off sentiment. The pair is holding below the pivot point at $1.05203, signaling further bearish potential. Immediate resistance stands at $1.04901, with key levels at $1.05625 and $1.06071 likely to act as significant barriers if the euro attempts a rebound.
On the downside, immediate support is at $1.03854, followed by stronger levels at $1.03489. A decisive break below $1.03854 could expose EUR/USD to further declines, potentially testing the $1.03400 area. The 50 EMA at $1.05197 is adding to selling pressure, reinforcing the bearish structure.
The RSI at 50 indicates neutral momentum, providing room for further moves in either direction. Traders are closely watching the $1.04893 entry point for potential short positions, with a target of $1.04366 and a stop loss at $1.05209.
EUR/USD - Trade Ideas
Entry Price – Sell Below 1.04893
Take Profit – 1.04366
Stop Loss – 1.05209
Risk to Reward – 1: 1.6
Profit & Loss Per Standard Lot = +$527/ -$316
Profit & Loss Per Mini Lot = +$52/ -$31
EUR/USD Price Analysis – Nov 25, 2024
Daily Price Outlook
The EUR/USD currency pair has regained some of its earlier bullish momentum, holding steady around the 1.0492 mark and even reaching an intra-day high of 1.0501. This comes despite the mixed results from the German IFO survey.
However, the recent bearish trend in the pair can be linked to a weakening US dollar, which has lost some ground due to technical factors. The US Dollar Index (DXY), a key measure of the dollar’s strength against other major currencies, dropped to around 107.00 after peaking at a two-year high of 108.07 on Friday.
Looking ahead, the shared currency remains on shaky ground, as market uncertainty grows. However, the potential appointment of Scott Bessent as Treasury Secretary has sparked concerns, with investors fearing that his selection could lead to tariff hikes, escalating into a global trade war. Such measures would likely hurt the already fragile Eurozone economy, particularly its export sector, adding pressure on the euro.
EUR/USD Recovers Amid Weaker US Dollar and Mixed Eurozone Data
Market traders are closely monitoring the EUR/USD pair, which is recovering some of its lost ground. It recently climbed to an intra-day high of 1.0501, supported by a weaker US dollar. The US Dollar Index (DXY) has dropped to around 107.00 after reaching a two-year high of 108.07, providing relief for the euro.
However, concerns linger over potential US tariff hikes under Scott Bessent, whose expected appointment as Treasury Secretary has fueled fears of a global trade war.
European Central Bank (ECB) Chief Economist Philip Lane has warned that such measures could significantly disrupt the Eurozone economy.
Recent data from Europe paints a mixed picture. Germany’s IFO Business Sentiment Index for November showed a slight decline in business morale, while expectations for the next six months held relatively steady.
Meanwhile, the Flash PMI data for November revealed continued challenges, with both the services and manufacturing sectors contracting.
New orders have now declined for six straight months, creating a stagflationary environment, according to analysts. Despite this, the euro has shown resilience, recovering from earlier lows.
ECB Chief Economist Philip Lane added to the positive sentiment by suggesting that inflation control could be achieved next year, making restrictive policies unnecessary afterward. This outlook, combined with the euro’s current recovery momentum, gives traders cautious optimism for the EUR/USD’s near-term performance.
EUR/USD – Technical Analysis
The EUR/USD pair is trading at $1.04778, down 0.61%, as the dollar strengthens amid broader risk-off sentiment. The pair is holding below the pivot point at $1.05203, signaling further bearish potential. Immediate resistance stands at $1.04901, with key levels at $1.05625 and $1.06071 likely to act as significant barriers if the euro attempts a rebound.
On the downside, immediate support is at $1.03854, followed by stronger levels at $1.03489. A decisive break below $1.03854 could expose EUR/USD to further declines, potentially testing the $1.03400 area. The 50 EMA at $1.05197 is adding to selling pressure, reinforcing the bearish structure.
The RSI at 50 indicates neutral momentum, providing room for further moves in either direction. Traders are closely watching the $1.04893 entry point for potential short positions, with a target of $1.04366 and a stop loss at $1.05209.
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EUR/USD Price Analysis – Nov 22, 2024
Daily Price Outlook
During European trading session on Friday, the EUR/USD managed to recover some of its losses after hitting a fresh two-year low around 1.0330. However, the outlook for the pair remains bearish.
This is due to the disappointing preliminary HCOB Eurozone Purchasing Managers Index (PMI) for November, which showed a surprising contraction in business activity. Meanwhile, the US Dollar continues its bullish run, pushing the US Dollar Index to nearly 108.00, intensifying the selling pressure on EUR/USD.
Weak Eurozone Data and Growing Economic Concerns Heighten Expectations for ECB Rate Cut, Weighing on EUR/USD
On the data front, the Eurozone's Composite PMI fell to 48.1, much lower than the expected 50.0, which signals a contraction in economic activity. A PMI below 50.0 indicates that the economy is shrinking.
The decline was mainly driven by a weaker-than-expected Services PMI, which dropped to 49.2, far below the forecast of 51.8. This marks the first time since January that the service sector has contracted. The Manufacturing PMI also continued to decline, falling to 45.2, worse than both expectations and the previous reading of 46.0.
Meanwhile, the slowdown in business activity has raised concerns among European Central Bank (ECB) officials. They are already worried about weak growth and potential risks, especially with the possibility of a trade war with the United States.
ECB Chief Economist Philip Lane warned that a global trade war, triggered by President-elect Donald Trump’s potential tariffs, could cause significant damage to the global economy. He stressed that trade disruptions would result in major output losses.
As a result of the weak data, traders now believe there is a greater than 50% chance that the ECB will cut its Deposit Facility Rate by 50 basis points (bps) to 2.5%. Before the PMI data was released, the chances of such a large rate cut were less than 20%. This shows growing expectations for the ECB to take action to support the economy.
Therefore, the weak Eurozone data and growing concerns about economic risks increase the likelihood of an ECB rate cut, which could weaken the euro further. As a result, EUR/USD may face additional downward pressure, with the US dollar strengthening in comparison.
US Dollar Strengthens on Optimistic Economic Outlook and Eased Fed Rate Cut Expectations
On the US front, the broad-based US dollar is gaining strength, with EUR/USD facing heavy selling pressure. The US Dollar Index is nearing a two-year high, fueled by expectations that the Federal Reserve (Fed) will cut interest rates less than previously thought.
Investors now expect the US economy to grow faster, particularly with President-elect Donald Trump's economic plans, which include cutting taxes and raising import tariffs, especially on countries like the Eurozone and China.
Trump’s plans to raise tariffs and cut taxes are expected to boost business investment, demand for labor, and domestic goods. This could lead to higher inflation, which would make the Fed more cautious about cutting interest rates too quickly.
As a result, market expectations for rate cuts have eased. The chance of a 25-basis point reduction in December has dropped to 56% from 70% just a month ago.
Looking ahead, investors are waiting for the US S&P Global PMI data for November, which will be released at 14:45 GMT. The report is expected to show stronger business activity, with growth in both the manufacturing and service sectors, which could further support the dollar’s bullish momentum.
EUR/USD – Technical Analysis
EUR/USD is trading at $1.04841, marking a modest gain of 0.10%, as the pair consolidates near critical support levels. Immediate resistance lies at $1.05129, with higher targets at $1.05767 and $1.06083. On the downside, immediate support is set at $1.04516, followed by $1.04300 and $1.03999, signaling the potential for bearish pressure if the pair breaches key levels.
The pivot point at $1.05548 serves as a key marker for directional bias. Currently, the pair trades below the 50-day EMA at $1.05494, indicating a bearish trend in the short term. The RSI at 38 suggests weak momentum, leaning toward oversold conditions but not yet signaling a reversal.
Traders are advised to consider selling below $1.05122, targeting $1.04501 with a stop-loss at $1.05629. A break below $1.04516 could lead to further declines toward $1.04300, while a recovery above $1.05129 would challenge bearish dominance and open the path to $1.05767.
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EUR/USD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- Bearish Bias: Trading below the pivot point and 50-day EMA at $1.05494 reinforces downside risks.
- Support Levels: Immediate support at $1.04516, with potential declines toward $1.04300 if breached.
- Weak Momentum: RSI at 38 indicates subdued buying interest, leaning toward oversold territory.
EUR/USD is trading at $1.04841, marking a modest gain of 0.10%, as the pair consolidates near critical support levels. Immediate resistance lies at $1.05129, with higher targets at $1.05767 and $1.06083. On the downside, immediate support is set at $1.04516, followed by $1.04300 and $1.03999, signaling the potential for bearish pressure if the pair breaches key levels.
The pivot point at $1.05548 serves as a key marker for directional bias. Currently, the pair trades below the 50-day EMA at $1.05494, indicating a bearish trend in the short term. The RSI at 38 suggests weak momentum, leaning toward oversold conditions but not yet signaling a reversal.
Traders are advised to consider selling below $1.05122, targeting $1.04501 with a stop-loss at $1.05629. A break below $1.04516 could lead to further declines toward $1.04300, while a recovery above $1.05129 would challenge bearish dominance and open the path to $1.05767.
EUR/USD - Trade Ideas
Entry Price – Sell Below 1.05122
Take Profit – 1.04501
Stop Loss – 1.05629
Risk to Reward – 1: 1.2
Profit & Loss Per Standard Lot = +$621/ -$507
Profit & Loss Per Mini Lot = +$62/ -$50
EUR/USD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- Resistance Levels: Key resistance at $1.06083, $1.06367, and $1.06620. A breakout above these levels is needed for bullish momentum.
- Support Levels: Immediate support lies at $1.05472, with further levels at $1.05176 and $1.04867 to watch for deeper downside risks.
- Technical Indicators: RSI at 52 signals neutral momentum, while the 50-day EMA at $1.05623 acts as a dynamic support zone.
EUR/USD is trading at $1.05874, down 0.06%, with bearish sentiment as the pair holds below the pivot point at $1.06083. Immediate resistance is positioned at $1.06367, with further resistance levels at $1.06620 and $1.06874, marking potential reversal zones for a bullish recovery.
The 50-day EMA at $1.05623 aligns closely with immediate support at $1.05472, forming a key short-term floor. Deeper support levels include $1.05176 and $1.04867, providing targets for sellers if the bearish trend persists.
The Relative Strength Index (RSI) is at 52, reflecting neutral momentum with no clear overbought or oversold signals. The pair is trading above the 50-day EMA, suggesting slight underlying bullish strength, but failure to break above $1.06083 could trigger a retreat.
Traders should watch the $1.05793 pivot closely—staying above this level favors bullish strategies, while a sustained break below $1.05472 would open the door for deeper corrections.
For now, a buy position above $1.05793 is recommended, targeting $1.06254 with a stop loss at $1.05565. However, sustained resistance at $1.06083 could limit gains, keeping the pair in a tight trading range.
EUR/USD remains range-bound below $1.06083, with opportunities for buying above $1.05793. However, failure to clear resistance levels could prompt further selling toward $1.05176.
EUR/USD - Trade Ideas
Entry Price – Buy Above 1.05793
Take Profit – 1.06254
Stop Loss – 1.05565
Risk to Reward – 1: 2
Profit & Loss Per Standard Lot = +$461/ -$228
Profit & Loss Per Mini Lot = +$46/ -$22
EUR/USD Price Analysis – Nov 20, 2024
Daily Price Outlook
During Wednesday’s European session, the EUR/USD currency pair continued its downward trend, dropping to around 1.0555 level. However, the pair weakens as the US dollar gained strength, supported by expectations of fewer interest rate cuts from the Federal Reserve (Fed) in its ongoing policy-easing cycle.
Moreover, the EUR/USD losses accelerated further amid growing negative sentiment towards the Eurozone, driven by ongoing geopolitical tensions, a weakening economic outlook, and political uncertainty in Germany.
US Dollar Strengthens Amid Slower Fed Rate Cuts and Geopolitical Tensions, Pressuring EUR/USD
On the US front, the broad-based US dollar strengthened as expectations grow that the Federal Reserve (Fed) will cut interest rates more slowly. Experts predict a rebound in US inflation and faster economic growth, especially with President-elect Donald Trump's victory.
Trump’s plans to raise import tariffs by 10% and lower taxes could limit the Fed’s ability to make deeper rate cuts. For December, the Fed is likely to cut rates by 25 basis points, bringing them to the 4.25%-4.50% range, though this decision is still uncertain, according to analysts at Deutsche Bank.
Moreover, the Greenback gained further traction after Russian President Putin's approval to revise nuclear doctrine in response to the US's approval of long-range missiles for Ukraine. This boosted demand for the USD as a safe haven. However, safe-haven demand weakened after Russian Foreign Minister Sergei Lavrov stated that Russia would avoid nuclear war if possible.
Therefore, the bullish US Dollar, driven by expectations of slower Fed rate cuts and geopolitical tensions, puts pressure on the EUR/USD pair. As the USD gains, the EUR/USD continues to weaken, reflecting negative sentiment towards the Eurozone and broader market uncertainty.
EUR/USD Struggles Amid Weak Eurozone Outlook and ECB Policy Focus on Growth
On the EUR front, the losses in the EUR/USD pair bolstered further by negative sentiment surrounding the Eurozone weighed on the currency. However, the geopolitical tensions, weak economic outlook, and uncertainty in German politics contributed to the Euro’s struggle. European Central Bank (ECB) officials are more focused on supporting growth than controlling inflation.
ECB policymaker Fabio Panetta stated that since inflation is close to the target and domestic demand is weak, there is no need for strict monetary policies. He also warned that if the economy doesn't improve, inflation could stay below the ECB’s target.
Looking ahead, the ECB is expected to cut its Deposit Facility Rate by 25 basis points to 3% in its December meeting. This would be the fourth interest rate cut this year and the third consecutive one.
In addition, recent data showed that Eurozone wage growth, measured by Negotiated Wage Rates, increased to 5.42% in Q3, up from 3.54% in the previous quarter.
This wage growth could help boost consumer spending, but it also highlights ongoing challenges in the Eurozone economy. As a result, the EUR continues to face pressure, limiting its recovery against the USD.
EUR/USD – Technical Analysis
EUR/USD is trading at $1.05874, down 0.06%, with bearish sentiment as the pair holds below the pivot point at $1.06083. Immediate resistance is positioned at $1.06367, with further resistance levels at $1.06620 and $1.06874, marking potential reversal zones for a bullish recovery.
The 50-day EMA at $1.05623 aligns closely with immediate support at $1.05472, forming a key short-term floor. Deeper support levels include $1.05176 and $1.04867, providing targets for sellers if the bearish trend persists.
The Relative Strength Index (RSI) is at 52, reflecting neutral momentum with no clear overbought or oversold signals. The pair is trading above the 50-day EMA, suggesting slight underlying bullish strength, but failure to break above $1.06083 could trigger a retreat.
Traders should watch the $1.05793 pivot closely—staying above this level favors bullish strategies, while a sustained break below $1.05472 would open the door for deeper corrections.
For now, a buy position above $1.05793 is recommended, targeting $1.06254 with a stop loss at $1.05565. However, sustained resistance at $1.06083 could limit gains, keeping the pair in a tight trading range.
EUR/USD remains range-bound below $1.06083, with opportunities for buying above $1.05793. However, failure to clear resistance levels could prompt further selling toward $1.05176.
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EUR/USD Price Analysis – Nov 18, 2024
Daily Price Outlook
EUR/USD Finds stability Ahead of ECB Lagarde's speech
EUR/USD Remains Above 1.0500
The ECB and Fed policy decisions are still unclear, hence the EUR/USD pair is trading roughly above the important support level of 1.0500. The recent surge in the US dollar has slowed after reaching an annual high, giving the euro some leeway. A push above 107.00 is sought by the US Dollar Index which compares the US dollar to other major currencies.
Trump's Policies Increase Uncertainty in the Market
Investors are keeping a careful eye on how Donald Trump's trade proposals might affect international markets. The USD may gain more strength, according to analysts, as Trump pursues an aggressive trade policy and more tariffs. The US economy has performed well in comparison to its counterparts, and Capital Economics economists now predict a 5% increase in the value of the dollar by the end of 2025.
Highlights of ECB Lagarde's Speech
This week's major event for traders is ECB President Christine Lagarde's address in Paris. Lagarde is going to discuss the possible effects of Trump's initiatives on the economy of the Eurozone. The euro is being held in check by uncertainty as analysts cannot agree on whether the ECB would lower rates by 25 or 50 basis points.
Fears of a Trade War between the US and the Eurozone
There are now more worries of a trade war among the US and the Eurozone. Trump has previously threatened punitive action against the eurozone for not buying enough US exports. Tensions have been exacerbated by recent comments made by Stephen Moore, Trump's economic advisor, indicating that the US is less interested in trade agreements with countries who support the EU.
Fed Continues to Be Wary
Jerome Powell, the chair of the Fed, recently stressed the need of monetary policy being prudent. While inflation is gradually approaching the Fed's 2% target, Powell stated during his speech in Dallas that the US economy does not demonstrate a need for rate decreases. Markets now estimate a 60% possibility of a quarter-point rate decrease in December, which is lower than what they had previously predicted.
Important Information to Note
New information on business activity and attitude in the wake of Trump's election victory will be available later this week with the release of November's preliminary Purchasing Managers' Index (PMI). Investors are watching for indications of optimism or worries that might influence monetary policy choices in the coming months.
The upward trajectory of the EUR/USD exchange rate will be significantly influenced by changes in central bank policies and trade policy.
EUR/USD – Technical Analysis
The EUR/USD pair is trading at $1.05484, up 0.10% on the day, as it continues to hover near the lower end of a consolidative range. The pivot point at $1.05772 serves as a crucial level to determine the short-term direction of the pair.
A decisive break above this level could pave the way for further gains toward immediate resistance at $1.06023, with the next key resistance levels positioned at $1.06312. On the downside, immediate support lies at $1.05332, while further weakness could see the pair testing $1.04867 and $1.04599.
The 50-day Exponential Moving Average (EMA) at $1.05730 is acting as a near-term cap on bullish momentum, suggesting that buyers face stiff resistance ahead. The Relative Strength Index (RSI) currently stands at 47, indicating neutral momentum, neither signaling overbought nor oversold conditions. This balanced reading suggests that EUR/USD could remain range-bound until a catalyst drives a breakout.
On the 4-hour chart, the pair is trading below the pivot point, with price action exhibiting a mild bearish tilt. However, a buy-limit strategy at $1.05333 could be a viable setup for traders, aiming for a take-profit target at $1.05866, with a stop-loss placed at $1.05005 to mitigate downside risks.
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EUR/USD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- Pivot Point at $1.05772: A key level to monitor for potential breakout or rejection.
- 50 EMA at $1.05730: Strong resistance, limiting bullish attempts in the short term.
- RSI at 47: Neutral momentum highlights consolidation and indecision.
The EUR/USD pair is trading at $1.05484, up 0.10% on the day, as it continues to hover near the lower end of a consolidative range. The pivot point at $1.05772 serves as a crucial level to determine the short-term direction of the pair.
A decisive break above this level could pave the way for further gains toward immediate resistance at $1.06023, with the next key resistance levels positioned at $1.06312. On the downside, immediate support lies at $1.05332, while further weakness could see the pair testing $1.04867 and $1.04599.
The 50-day Exponential Moving Average (EMA) at $1.05730 is acting as a near-term cap on bullish momentum, suggesting that buyers face stiff resistance ahead. The Relative Strength Index (RSI) currently stands at 47, indicating neutral momentum, neither signaling overbought nor oversold conditions. This balanced reading suggests that EUR/USD could remain range-bound until a catalyst drives a breakout.
On the 4-hour chart, the pair is trading below the pivot point, with price action exhibiting a mild bearish tilt. However, a buy-limit strategy at $1.05333 could be a viable setup for traders, aiming for a take-profit target at $1.05866, with a stop-loss placed at $1.05005 to mitigate downside risks.
EUR/USD - Trade Ideas
Entry Price – Buy Limit 1.05333
Take Profit – 1.05866
Stop Loss – 1.05005
Risk to Reward – 1: 1.6
Profit & Loss Per Standard Lot = +$533/ -$328
Profit & Loss Per Mini Lot = +$53/ -$32