After several days of losses, EUR/USD is starting to attract buyers around a key support zone.
Could this lead to a bounce in the next few trading sessions?
Here’s what’s happening on the daily time frame:
EUR/USD Daily – Chart Faster with TradingView
The Euro Area’s exposure to the U.S.-Iran conflict and European Central Bank (ECB) officials’ concerns about higher inflation if the U.S.-Iran war drags on had traders selling the euro earlier this week.
The U.S. dollar, meanwhile, soaked up demand as traders looked for a safe haven amid less dovish Fed interest rate expectations.
But that was earlier this week. With both the Euro Area and the U.S. printing positive PMI reports and uncertainty surrounding the February U.S. NFP release, the euro could have its moment against the U.S. dollar in the next trading sessions.
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on the euro and the U.S. dollar, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
EUR/USD, which hit 1.2000 in late January, broke below its consolidation around 1.1800 and is now trading closer to the 1.1600 psychological level.
That area could attract bullish demand as it sits near the 1.1530 to 1.1550 zone, which marks a potential range support area. The S2 Pivot Point (1.1642) could also draw in some buying interest.
A couple more long lower wicks and bullish candlesticks could spark a bounce, potentially lifting EUR/USD back toward higher areas of interest like the 1.1800 mid-range levels, if not the 1.2000 previous highs.
But if the current pause simply reflects traders catching their breath, then EUR/USD could make another run at the 1.1530 to 1.1550 range support zone and possibly slide toward lower inflection points like 1.1500 or 1.1400.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment.
Promoted: The Analysis & Strategy are only half the Battle; Your Mindset is the Rest.
Today’s chart art zooms in NZD/USD’s uptrend. But as any pro will tell you, even the cleanest trend-following setup can fall apart if the trader doesn’t stay disciplined when price starts testing the level.
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Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
