Mohammad Quqas
Independent Analyst
-
The EUR/USD pair rebounds from last week's lows and approached key resistance.
-
The indicator for the moving average (MA) displays a negative sign for the near term.
-
The momentum oscillator (RSI) holds onto a natural zone with a decline in momentum.
EUR/USD traded in a narrow sideways range during the initial European session. The major currency pairs couldn’t make any meaningful moves on the previous day. At press time, EUR/USD traded at 1.0715, down 0.02% on a daily basis.
4-hour candlestick graph
This Outlook Relies on a Four-Hour Timeframe
However, EUR/USD clings to the 1.0708 support level after falling from yesterday's high level of 1.0731. Furthermore, the crucial resistance level of 1.0751 has been elusive since June 3rd, keeping the European currency trading at the current levels.
On the 4-hour chart, the 21-period crosses below the 50-period on the Moving Average (MA) indicators, which suggests a downside trend in the near term. Meanwhile, the Relative Strength Index (RSI) 51.78 records 51.78 on the value line with a decrease in momentum. Any uptick would support the buying power and vice versa.
On the other hand, the market participants should wait for a trend confirmation, while the support level of 1.0708 holds price from falling as the resistance level of 1.0751 holds the price from further gains.
The aforementioned support and resistance levels are the keys to predictions of the possible next step that is more likely to occur. Consequently, sellers would wait for a divisive breach of the 1.0708 hurdle. a successful close below that level for the 4-hour candlestick would pave the way towards the 1.0678 support level. Below that level, market participants' eyes would be on 1.0653, the low of June 3rd.
On the flip side, if EUR/USD wants to make further gains, it should succeed in conquering the 1.0751 hurdle. Subsequent to a decisive breach of the aforementioned level, traders would target the 1.0787 resistance level, followed by the 1.0816 resistance level.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
EUR/USD accelerates losses to 1.0930 on stronger Dollar
The US Dollar's recovery regains extra impulse sending the US Dollar Index to fresh highs and relegating EUR/USD to navigate the area of daily troughs around 1.0930 in the latter part of Friday's session.
GBP/USD plummets to four-week lows near 1.2850
The US Dollar's rebound keep gathering steam and now sends GBP/USD to the area of multi-week lows in the 1.2850 region amid the broad-based pullback in the risk-associated universe.
Gold trades on the back foot, flirts with $3,000
Gold prices are accelerating their daily decline, steadily approaching the critical $3,000 per troy ounce mark as the Greenback's rebound gains extra momentum and US yields tighten their retracement.
Can Maker break $1,450 hurdle as whales launch buying spree?
Maker holds steadily above $1,250 support as a whale scoops $1.21 million worth of MKR. Addresses with a 100k to 1 million MKR balance now account for 24.27% of Maker’s total supply. Maker battles a bear flag pattern as bulls gather for an epic weekend move.
Strategic implications of “Liberation Day”
Liberation Day in the United States came with extremely protectionist and inward-looking tariff policy aimed at just about all U.S. trading partners. In this report, we outline some of the more strategic implications of Liberation Day and developments we will be paying close attention to going forward.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.