On Tuesday, the EUR/USD pair experienced some price movements. Let’s break down the key levels and potential scenarios for traders to watch.
![](https://www.forexcycle.com/wp-content/uploads/2024/20240731_EURUSD_1.png)
Recent Price Action
- Support: The pair found support above 1.0795.
- Resistance: It encountered resistance below 1.0835.
This suggests that after a short-term rise, the EUR/USD could continue its downward trend.
Key Levels to Watch
- Resistance Levels:
- Initial resistance: 1.0835
- Important resistance: 1.0850–1.0855
- Support Levels:
- Initial support: 1.0790–1.0795
- Important support: 1.0770
Potential Scenarios
- Bearish Scenario:
- If EUR/USD faces resistance below 1.0855 today, the next target could be around 1.0770.
- Bullish Scenario:
- If the pair manages to break above 1.0855, it could signal a potential reversal of the recent downtrend.
Conclusion
The EUR/USD pair is currently navigating between key support and resistance levels. Traders should closely monitor these levels for potential trading opportunities. A break above 1.0855 could indicate a bullish reversal, while resistance below this level might lead to further declines towards 1.0770.
Remember to always use proper risk management techniques and consider multiple timeframes when making trading decisions based on this analysis.