Price Returns to 1.20 Chart
#Price #Return #Chart
The world of forex trading is always abuzz with excitement, as market enthusiasts closely watch currency pairs for signs of fluctuation. Among the most popular and heavily traded currency pairs is the EUR/USD, which has been making headlines lately with its potential return to the 1.20 price point. But what’s behind this movement, and what can traders expect in the coming days?
To understand the current state of the EUR/USD, let’s take a closer look at the overall trend. As of now, the pair is preparing for an upward breakout, with support levels at 1.1630, 1.1550, and 1.1480, and resistance levels at 1.1720, 1.1800, and 1.1870. This means that traders are advised to buy EUR/USD from the support level of 1.1570 with a target of 1.1900 and a stop loss of 1.1500, and sell EUR/USD from the resistance level of 1.1760 with a target of 1.1500 and a stop loss of 1.1810.
[Image: EUR/USD chart showing support and resistance levels]
The recent rebound of the EUR/USD price is a significant development, as it indicates a potential shift in the market trend. Since the beginning of this week’s trading, the pair has been attempting to rebound upwards, with gains extending to the 1.1680 resistance level. This rebound is crucial for the Euro/dollar’s path to return to an upward trend, and traders will be closely watching to see if there are opportunities to break the 1.1830 resistance again. If successful, this could renew expectations for the Euro/dollar to reach the psychological peak of 1.2000, confirming bull dominance and pushing technical indicators towards strong overbought levels.
[Image: EUR/USD daily timeframe chart showing the 14-day RSI and MACD lines]
From a technical analysis perspective, the daily timeframe chart shows that the 14-day RSI is stable around a reading of 55, moving away from the 50 neutral line and awaiting further gains before reaching overbought territory. At the same time, the MACD lines are preparing to turn upwards, indicating a potential bullish trend. With the announcement of German industrial production and the trade balance, as well as the inflation report from the European Central Bank, traders will be keeping a close eye on these economic indicators to gauge the market’s reaction.
So, what’s driving the recent rise in the Euro/Dollar? According to forex trading experts, the EUR/USD exchange rate has rebounded upwards as markets awaited new indicators on the economy and Federal Reserve policy, leading to relatively narrow trading ranges. Despite the sharp rise in the Euro last Friday, it’s too early to expect a continued rally, and traders are advised to follow a strategy of selling the Euro/dollar on every strong upward rebound. The US ISM services index fell to 50.1 in July from 50.8 previously, and was lower than the forecast of 51.5, which will raise new fears about stagflation, with weak economic activity and increasing upward pressure on prices.
[Image: US ISM services index chart]
In terms of economic data, the US employment saw a sharp decrease, while prices rose at the fastest pace since December 2022. This data will increase concerns about the economic impact of tariffs, and traders will be watching closely to see how the market reacts to these developments. The issue of Federal Reserve board appointments will also be a key market issue, with expectations that President Trump will nominate a replacement for Governor Kugler. Furthermore, there are expectations that this nominee could be the next Fed Chair, which will have significant implications for the market.
[Image: Federal Reserve building]
On the European side, the Eurozone has seen limited developments, with a slight downward revision to the services PMI, although it remained in expansionary territory. Commenting on the economic data, Scotiabank remains optimistic about the outlook, stating that “Eurozone data surprises continue to come in generally positively, which should help to keep the Euro outlook strong as investors begin to anticipate that the Fed will catch up with the ECB’s aggressive policy easing.”
[Image: Eurozone services PMI chart]
As the market continues to evolve, traders will need to stay informed and adapt their strategies accordingly. With the potential return to the 1.20 price point, the EUR/USD is certainly worth keeping an eye on. Whether you’re a seasoned trader or just starting out, it’s essential to stay up-to-date with the latest market analysis and news to make informed trading decisions.
In conclusion, the EUR/USD is poised for a potential upward breakout, with support and resistance levels in place. Traders should be prepared to buy and sell accordingly, taking into account the latest economic indicators and market analysis. As the market continues to fluctuate, one thing is certain – the EUR/USD will remain a closely watched currency pair, with traders eagerly awaiting its next move. So, stay ahead of the curve, and get ready to trade with confidence. Share your thoughts on the EUR/USD’s potential return to the 1.20 price point in the comments below, and don’t forget to share this article with your fellow traders!
