EUR/USD Reached Critical Resistance, Next Target is 1.1184
EUR/USD Technical Analysis
The technical outlook of the daily chart of EUR/USD shows that the price is moving towards the 61.8% Fibonacci Retracement level (calculated from a high of May 2021 to a low in September 2022). The descending trendline is acting as initial resistance; a break and closing above this line could spark a massive bullish rally towards 1.11848.
On the downside, the initial support lies at 20-SMA 1.09839; after that, the 50.0% Fibonacci Retracement level will provide the next support. The MACD histograms have also started to lean towards the zero line, suggesting a weak bullish trend.
The idea is to wait for the prices of EUR/USD to close above the descending trendline before entering in a long position. And on the downside, if prices break below the 50 Fibonacci Retracement level, it might open an opportunity for a short position in EUR/USD.
Daily Technical Levels
Pivot Point: 1.1050