As all, we know the EUR/USD pair is one of the most traded pair around the world, and one from the most pair traders are interested in with its moves in financial markets. Maybe that is because of the great liquidity this pair always has in the trading sessions every day, week, and month. Maybe also, because the Euro is representing the European Union region currency, and the US Dollar represents the United States currency, which has the largest global economy at present.
We have previously discussed the EUR/USD pair through a technical analysis report during mid-January, but we will highlight it again today.
First: EUR / USD trades out of the bearish channel’s range
Now, we can see the EUR/USD pair trades out of the bearish channel’s range, as the pair has been trading all the Tuesday ‘s trading sessions in a sideways range. The Pair also has been trading inside the bearish channel’s range since 3 February since it has touched the horizontal resistance (Previous Support) at 1.10930, which we had mentioned previously in our previous technical analysis.
Second: EUR / USD is trading nearest support levels (Potential Rebounding Area)
Yesterday Tuesday, EUR/USD pair has tested the support level 1.08896, but yet, the pair has not rebounded upside significantly. Our point of view is the EUR/USD pair may go to test the support levels, which we had drawn it in the chart above. We are seeing these support levels as a potential rebounding area of the pair.
We might see the pair breaks these support levels as a second scenario. In this case, we will consider this move if happened as a negative sign, where we expect the pair to go to test other support levels below this area. This is an inevitable scenario, as the US dollar index is trading at higher levels, showing the strength of the US dollar against the major currencies’ basket, including the euro.
- 1.08896 Level.
- 1.08801 Level.
Third: 1.09881 is the current resistance level for the EUR / USD
The 1.09881 level is the current resistance level of the EUR / USD pair, as the pair is likely to rebound back to test this level if the pair fails to break the mentioned support levels.