The EUR/USD pair experienced a mixed trading session on Monday, with some interesting technical developments that could shape its near-term direction.
Key Takeaways:
- Support found above 1.0720
- Resistance encountered below 1.0780
- Potential for continued upward movement despite recent decline
Possible Scenarios
If the EUR/USD manages to stabilize above 1.0705 today, we could see a bullish push targeting the 1.0765 to 1.0800 range.
Important Levels to Watch
Resistance levels:
- Short-term: 1.0740 – 1.0745
- Significant: 1.0760 – 1.0765
Support levels:
- Short-term: 1.0705 – 1.0710
- Significant: 1.0685 – 1.0690
What This Means for Traders
The current price action suggests that while the EUR/USD has experienced a short-term decline, the overall trend may still lean bullish. Traders should keep a close eye on how the pair behaves around the key support level of 1.0705. A bounce from this area could signal a resumption of the upward movement.
However, it’s crucial to remain cautious and watch for any breaks below the significant support level at 1.0685, which could indicate a shift in the short-term trend.
As always, it’s advisable to use proper risk management techniques and consider multiple timeframes and fundamental factors alongside this technical analysis.