EUR/USD is back near a key area of interest after pushing above a major resistance zone!
Will the pair head higher in the next trading sessions?
Let’s zoom in on the 4-hour time frame:
EUR/USD 4-hour Forex Chart by TradingView
The release of better-than-expected mid-tier U.S. reports and less dovish remarks from FOMC members got traders second-guessing their December interest rate cut speculations.
Meanwhile, mixed mid-tier data from the Euro Area and ongoing tensions between Russia and Ukraine may be keeping a lid on EUR demand.
All these may change in the next few days as the Fed releases its latest meeting minutes and Uncle Sam drops its awaited labor market reports.
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 U.S. dollar and the Euro, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
EUR/USD, which has been in a downtrend since mid-September, recently broke above a trend line resistance.
However, the pair soon hit a ceiling near 1.1650 and is now closer to the 1.1575 zone that aligns with the broken trend line resistance area.
The current zone could attract bullish interest since it also sits near the 100 SMA, the S1 Pivot Point line (1.1556), and the 50% Fibonacci retracement of November’s upswing.
A run of bullish candlesticks and steady action above 1.1575 could lift EUR/USD back to the 1.1650 highs or even toward new November highs above 1.1700.
But if the pair keeps its bearish swing and breaks below 1.1550, sellers may guide it toward 1.1500 or even the 1.1450 November lows.
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.
Disclaimer:
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.
