On Wednesday, the EUR/USD pair experienced some movements, finding support above 1.0905 and encountering resistance below 1.0940. This suggests that after a short-term rise, the EUR/USD might continue its downward trend.
Key Levels to Watch
- Resistance Levels:
- Immediate resistance: 1.0940
- Important resistance: 1.0965
- Support Levels:
- Short-term support: 1.0900
- Significant support: 1.0870
Potential Scenarios
- Bearish Scenario: If the EUR/USD faces resistance below 1.0940 today, the next target could be the support level at 1.0870. This would indicate a continuation of the downward trend.
- Bullish Scenario: If the pair manages to break above 1.0940, it could signal a potential reversal, with the next resistance level at 1.0965.
Conclusion
The EUR/USD pair is currently navigating between key support and resistance levels, indicating potential for both upward and downward movements. Traders should closely monitor these levels to identify trading opportunities. A break below 1.0870 could confirm further declines, while a move above 1.0940 might suggest a shift towards a bullish trend.
Remember to always use proper risk management techniques and consider multiple timeframes when making trading decisions based on this analysis.