Euro/Dollar: Up or Down? Article Sponsored by CloseOption Broker

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 Euro/Dollar: Up or Down? Article Sponsored by CloseOption Broker

 

The key support and resistance level ahead for EUR/USD is as follows:
 
• Third Key resistance level of EUR/USD: 1.05800
• Second Key resistance level of EUR/USD: 1.05000
• First key resistance level of EUR/USD: 1.04333
• First key support level of EUR/USD: 1.03450
• Second Key support level of EUR/USD: 1.02730
• Third Key support level of EUR/USD: 1.02230
 
Euro/Dollar: Up or Down?
 
As mentioned in our previous analysis of the EUR/USD pair dated 7 January 2025, if prices settled below the key 1.03450 level, there was scope for further downside to the indicated levels, which duly occurred.

Over the past three months, the trend has been decidedly bearish, and the price has strayed into oversold territory. On longer timeframes, like the weekly chart, with the appearance of the first signs of a trend reversal (a spinning top candlestick pattern coupled with a divergence between price and the Stochastic), selling pressure has eased off, creating an opening for bargain hunters.

On shorter timeframes, such as the daily chart, price action during its ascent was held back upon encountering the descending trendline (formed by two resistance points). However, there’s still potential for buyers to have another stab at this line.

In the current climate, if prices hold above the key 1.03450 level, there’s a chance of retesting the descending trendline, cracking it, and pushing higher towards the 1.04580 and 1.05000 resistance levels.

On the flip side, in the event of a downward move, the first indication would be a break of the key 1.03450 support level and prices settling below it. In this scenario, the support levels in sight for traders would be 1.0273 initially and then down to 1.02230.

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