EUR/USD May Fall 23 - 38 Pips (READ DESCRIPTION)
EUR/USD May Fall 23 - 38 Pips
Pivot Point: 1.0950
The 1.0950 pivot point is a key resistance level. It represents the dividing line between bullish and bearish trends. As long as the price remains below this level, sellers are likely to be in control, pushing the pair lower. A break above 1.0950 would shift the focus to the upside.
Primary Strategy (Our Preference):
Entry Point: Short positions should be considered below 1.0950.
Target Levels:
1.0900: The first key support level, marking a 50-pip decline from the pivot. This is an important psychological barrier where buyers could start stepping in. However, if the selling pressure is strong, this level could be breached.
1.0885: The next potential support, marking a further 15-pip drop from 1.0900, representing a 65-pip decline from the pivot level.
Alternative Scenario:
If EUR/USD breaks above the pivot point of 1.0950, look for buying opportunities.
Entry Point: Long positions should be initiated if the price breaks and holds above 1.0950.
Target Levels:
1.0965: The first upside resistance target, marking a 15-pip rise from the pivot. If the buying momentum is sustained, the pair is likely to test this level first before moving further up.
1.0980: The next resistance zone, marking a 30-pip upside move from the pivot. Breaching this level could signal the beginning of a larger uptrend.
Technical Outlook:
RSI (Relative Strength Index): The RSI is likely below its neutral 50 level, indicating that the bearish momentum is currently stronger. This suggests that sellers are in control, but if the RSI approaches oversold levels (below 30), a reversal might be on the cards.
MACD (Moving Average Convergence Divergence): The MACD is expected to be negative and below its signal line, reinforcing the bearish outlook. If the MACD line starts to flatten or move upward, it could signal a weakening of the downtrend.
Moving Averages: EUR/USD is likely trading below both its 20-period and 50-period moving averages, indicating both short-term and medium-term weakness and supporting the bearish scenario.
Market Dynamics:
As long as EUR/USD remains below the pivot point at 1.0950, expect a choppy but overall bearish price action. Sellers are likely to step in at any short-term rallies, pushing the pair lower toward 1.0900 and potentially 1.0885. The area around 1.0900 and 1.0885 represents key support levels where buyers may attempt to step in. If bearish momentum persists, these levels could break, leading to further downside. A break above 1.0950 would indicate a potential shift in market sentiment, opening the door for a move higher towards 1.0965 and 1.0980.
Pivot Point: 1.0950
The 1.0950 pivot point is a key resistance level. It represents the dividing line between bullish and bearish trends. As long as the price remains below this level, sellers are likely to be in control, pushing the pair lower. A break above 1.0950 would shift the focus to the upside.
Primary Strategy (Our Preference):
Entry Point: Short positions should be considered below 1.0950.
Target Levels:
1.0900: The first key support level, marking a 50-pip decline from the pivot. This is an important psychological barrier where buyers could start stepping in. However, if the selling pressure is strong, this level could be breached.
1.0885: The next potential support, marking a further 15-pip drop from 1.0900, representing a 65-pip decline from the pivot level.
Alternative Scenario:
If EUR/USD breaks above the pivot point of 1.0950, look for buying opportunities.
Entry Point: Long positions should be initiated if the price breaks and holds above 1.0950.
Target Levels:
1.0965: The first upside resistance target, marking a 15-pip rise from the pivot. If the buying momentum is sustained, the pair is likely to test this level first before moving further up.
1.0980: The next resistance zone, marking a 30-pip upside move from the pivot. Breaching this level could signal the beginning of a larger uptrend.
Technical Outlook:
RSI (Relative Strength Index): The RSI is likely below its neutral 50 level, indicating that the bearish momentum is currently stronger. This suggests that sellers are in control, but if the RSI approaches oversold levels (below 30), a reversal might be on the cards.
MACD (Moving Average Convergence Divergence): The MACD is expected to be negative and below its signal line, reinforcing the bearish outlook. If the MACD line starts to flatten or move upward, it could signal a weakening of the downtrend.
Moving Averages: EUR/USD is likely trading below both its 20-period and 50-period moving averages, indicating both short-term and medium-term weakness and supporting the bearish scenario.
Market Dynamics:
As long as EUR/USD remains below the pivot point at 1.0950, expect a choppy but overall bearish price action. Sellers are likely to step in at any short-term rallies, pushing the pair lower toward 1.0900 and potentially 1.0885. The area around 1.0900 and 1.0885 represents key support levels where buyers may attempt to step in. If bearish momentum persists, these levels could break, leading to further downside. A break above 1.0950 would indicate a potential shift in market sentiment, opening the door for a move higher towards 1.0965 and 1.0980.
Penafian
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