EUR/USD looks ready to extend a weeks-long trend after falling to a key support zone!
Can the pair sustain a bullish momentum in the next trading sessions?
We’re taking a closer look at the 4-hour time frame!
EUR/USD 4-hour Forex Chart by TradingView
Tensions in the Middle East flared up over the weekend after the U.S. hit Iran’s nuclear sites, prompting Iran to fire back with more missiles aimed at Israel.
That kicked off a rush into safe havens, with the euro taking a hit against the dollar. But some profit-taking and positioning ahead of this week’s big events helped trim the euro’s losses and capped the dollar’s early gains.
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 slipped to the 1.1450 area earlier today. That level’s worth watching since it lines up with the 100 SMA on the 4-hour chart, S1 (1.1340) Pivot Point, and the bottom of the ascending channel that’s held since early May.
If the pair holds the line and we see more green candlesticks, buyers could take another swing at 1.1550, maybe even stretch toward the 1.1600 or 1.1650 previous areas of interest.
But if that bounce turns out to be a fluke and price breaks below the channel and Pivot Point support, we could be looking at a drop toward 1.1450 where the S1 Pivot Point is, or the 1.1350 support zone closer to the S2 Pivot Point and 200 SMA.
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.
