EUR/USD in a Short term Bullish Range on a Weekly Chart, resistance at 1.08231
The EUR/USD currency pair is currently experiencing a bearish momentum on the weekly timeframe, with short-term bearishness also evident. This price movement is influenced by various fundamental factors, including monetary policies, economic conditions, and market sentiment.
The price is positioned below both the 50 and 200-day moving averages, indicating a prevalent bearish trend.
Scenario 1: Bullish Reversal If the price continues to rise, it might retest the 1.07943 to 1.08231 level. A successful test at this range could lead to further upward movement towards the 1.0860 and 1.08687 levels, followed by the 1.08819 level. Continued bullish momentum may result in the price targeting higher levels, such as 1.09005 and 1.09171.
Scenario 2: Bearish Continuation Conversely, if the price reverses from its current levels, it could head lower and test the 1.07656 level. A successful test at this support level might trigger further downward movement towards the 1.07802 level, followed by the next significant support level at 1.07656. Depending on market sentiment, there’s a possibility of the price testing the 1.07510 to 1.07273 levels. Key support levels to monitor are situated at 1.07112, with 1.06889 acting as a major support level. A breach of these support levels could indicate a stronger bearish sentiment.
The Relative Strength Index (RSI) currently indicates a bearish oversold range. However, it’s important to note that there has been a decrease in momentum on the weekly timeframe. This could suggest potential shifts in market sentiment and price direction.
Key Levels to watch are 1.08231,1.07892,1.07656,1.07273,1.09005,1.06700