The key support and resistance levels ahead for EUR/USD are as follows:
Third Key resistance level of EUR/USD: 1.06600
Second Key resistance level of EUR/USD: 1.05860
First key resistance level of EUR/USD: 1.05200
First key support level of EUR/USD: 1.04850
Second Key support level of EUR/USD: 1.04600
Third Key support level of EUR/USD: 1.04236
As highlighted in the previous EUR/USD analysis dated 2024.11.13, the pair had the potential to reach the key level of 1.051, a scenario that ultimately materialised.
Over the past two months, EUR/USD has experienced a consistent downtrend due to positive and optimistic developments in the U.S. economy. This bearish momentum has allowed sellers to push the price down to the current lowest level of 1.03307.
During this decline, the price encountered historical support at 1.03450, which acted as a barrier to further downward movement. This suggests that some conservative sellers might have used this level to exit their positions.
Since the beginning of this week, EUR/USD has been trading within a range-bound pattern, confined between the resistance level of 1.05200 and the support level of 1.04850. This consolidation reflects traders’ caution and anticipation ahead of today’s (18th) economic data releases.
Although some high-risk buyers believe the pair is at a potential bottom and have started to take positions, the overall long-term and short-term trends remain bearish. The first indication of weakening bearish momentum and a potential start of an upward move would be the breakout of the resistance levels at 1.05200, followed by 1.05860.
The CloseOption Team
