On Wednesday, the EUR/USD pair showed interesting price action that could indicate a potential continuation of its recent downtrend. Let’s break down the key levels and possible scenarios:
Recent Price Action
- Support found above 1.0825
- Resistance encountered below 1.0870
This pattern suggests that after a short-term rise, the EUR/USD may continue its downward trend.
Potential Bearish Scenario
If the EUR/USD faces resistance below 1.0865 today, we could see a downward move targeting the 1.0800 area.
Key Levels to Watch
Resistance levels:
- Short-term resistance: 1.0865
- Significant resistance: 1.0885
Support levels:
- Short-term support: 1.0825
- Significant support: 1.0800
Trading Strategy
Traders might consider:
- Looking for selling opportunities near the 1.0865 resistance zone
- Setting profit targets around the 1.0800 support area
- Being cautious of any breaks above 1.0885, which could signal a potential trend reversal
Remember to always use proper risk management techniques and consider multiple timeframes when making trading decisions based on this analysis.