The EUR/USD currency pair is one of the most actively traded instruments in the forex market. Due to its high liquidity, moderate volatility, and sensitivity to macroeconomic events, it provides numerous trading opportunities for technical analysts. In this article, we’ll examine the daily chart of EUR/USD, identify critical supply and demand zones, and assess potential price movements.
Technical Analysis of EUR/USD
On the daily chart, the price has resumed an upward trend after a correction phase and is currently trading around the 1.1740 level. The recent price action highlights strong bullish momentum, particularly after a sharp bounce from the 1.1600–1.1620 demand zone.
Key Supply Zones:
- 1.1790 – 1.1850 Zone:
This area has previously acted as a resistance zone where sellers pushed the price downward. It now serves as a key short-term barrier, and price reaction here could indicate the next move.
- 1.1900 – 1.1940 Zone:
A psychological resistance and longer-term ceiling. If the price breaks above the 1.1850 zone, this would likely be the next target for bulls.
Key Demand Zones:
- 1.1600 – 1.1620 Zone:
This zone showed strong bullish activity as buyers stepped in, causing a sharp reversal. It currently acts as a solid support level.
- 1.1470 – 1.1500 Zone:
If a deeper pullback occurs, this range could serve as the next significant demand zone, offering potential long trade setups.
Price Outlook
If the price successfully breaks and holds above the 1.1790 level, a move toward 1.1850 and eventually 1.1900 could follow. However, if sellers regain control at this resistance, a retracement to 1.1650 or even 1.1600 may take place.
The recent candlestick pattern suggests indecision at current levels, but the overall trend remains bullish. A daily close above 1.1740 would strengthen the bullish outlook.
Conclusion
EUR/USD is currently in a bullish phase but approaching critical resistance zones. Key supply and demand areas will play a crucial role in determining the next major move. Traders should watch for price action confirmations around these levels to minimize risk and improve trade timing.
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