Euro Faces Selling Pressure (Chart)

EUR/USD Analysis Summary Today

  • Overall Trend: : Upward Technical Correction
  • Support Levels for EUR/USD Today: 1.1710 – 1.1660 – 1.1580
  • Resistance Levels for EUR/USD Today: : 1.1790 – 1.1830 – 1.1900

EUR/USD Analysis 17/12: Euro Faces Selling Pressure (Chart)

EUR/USD Trading Signals:

  • Buy EUR/USD from the support level of 1.1630 with a target of 1.1850 and a stop-loss at 1.1570.
  • Sell EUR/USD from the resistance level of 1.1810 with a target of 1.1500 and a stop-loss at 1.1900.

Technical Analysis of EUR/USD Today:

Based on recent performance, the EUR/USD pair has been witnessing a steady climb from its lows around 1.1610, following an ascending trendline that connects recent lows over the past month. According to reliable trading platforms, the pair recently touched a high of 1.1800 before retracing, and is currently testing a support level around 1.1730.

Simultaneously, Fibonacci levels drawn from the 1.1610 low to the 1.1800 high reveal potential support areas where the correction may find a floor:

The 38.2% Fibonacci level is at 1.1731.
The 50% level is at 1.1708.

A significant pullback could reach the 61.8% Fibonacci level at 1.1685, which nearly coincides with the ascending trendline support and may represent a crucial turning point for the bullish trend to continue. If any of these Fibonacci levels or the trendline support holds as a bottom, EUR/USD could resume its ascent toward its recent high or even record new levels above the 1.1800 psychological resistance. Conversely, breaking below the 61.8% level and the trendline would signal weakening bullish momentum and could lead to a deeper retreat.

Additionally, The Stochastic oscillator is trending downwards from overbought territory, indicating that sellers are gaining some momentum after the recent rally. However, the indicator is approaching the neutral 50 level and still has considerable room to fall before reaching oversold territory, meaning the correction could extend further before buyers return.

Meanwhile, yhe Relative Strength Index (RSI) is moving downwards from its recent highs and is currently hovering around the 50 level. The index still has considerable room to maneuver before reaching oversold territory, so the price may continue to move accordingly as sellers dominate market movements in the near term.

Trading Advice:

We recommend selling the EUR/USD pair from above the 1.1800 resistance level without risk, while always diversifying your investment portfolio with several trading products in addition to the EUR/USD.

Factors Affecting EUR/USD Trading Today

During today’s forex trading, the EUR/USD pair may be affected by the European Central Bank’s (ECB) anticipated decision. It is widely expected that the ECB will maintain its current monetary policy, emphasizing its cautious, data-driven approach to any changes. However, any significant shift in its rhetoric could impact monetary policy expectations and the direction of the single European currency. EUR/USD trading today will also be influenced by the release of Eurozone inflation figures at 12:00 PM Egypt time, which will, in turn, affect the ECB’s policy direction. Regarding currency performance, the US dollar weakened after the highly anticipated US jobs report confirmed a slowdown in the labor market. While the US economy added 64,000 jobs in November, exceeding expectations of 50,000, this positive figure was the limit. The revised October report showed a loss of 105,000 jobs, while the unemployment rate rose to 4.6%.

The adjusted three-month job creation rate was only 22,000, highlighting the extent of the economic downturn and justifying the Federal Reserve’s interest rate cuts in an attempt to support the economy. Although the economy appears outwardly robust, the weakness in the labor market indicates an uneven pace of economic growth. Overall, the Federal Reserve’s further interest rate cuts reinforce expectations of a weaker US dollar in the coming weeks.

Ready to trade our EUR/USD daily forecast? Here’s a list of some of the top forex brokers in Europe to check out.

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