In light of today's scheduled release of key economic reports such as core retail sales, initial jobless claims, and retail sales, the EUR/USD pair's movements will be closely watched. These data points will provide valuable insights into the U.S. economic landscape and could influence the Federal Reserve's monetary policy decisions in the upcoming period.
Technical analysis: The EUR/USD pair is currently showing signs of recovery as it trades above the major support zone at 1.07300. The pair's recent upswing from this level indicates a demand zone that is being actively defended by bulls. However, the pair now approaches a critical juncture as it nears the 1.07600 mark, which has previously acted as strong support and may now turn into resistance. This level is pivotal, and the pair's reaction to it will likely dictate the short-term directional bias.
Our position: Considering the potential impact of the upcoming economic reports, we adopt a cautious stance. We are holding our short positions in which we got in around 1.079 as it created a double top rejecting the 1.080 resistance. If the EUR/USD pair demonstrates strength by breaching the 1.0800 resistance, it may present an opportunity for bullish entries. But that scansion seems unlikely as the USD just keeps on getting stronger. Conversely, a rejection at this level or the 1.076 level could see the continuation of the bearish trend. We continue to look for shorts as the outlook on the dollar stays bullish.
Technical analysis: The EUR/USD pair is currently showing signs of recovery as it trades above the major support zone at 1.07300. The pair's recent upswing from this level indicates a demand zone that is being actively defended by bulls. However, the pair now approaches a critical juncture as it nears the 1.07600 mark, which has previously acted as strong support and may now turn into resistance. This level is pivotal, and the pair's reaction to it will likely dictate the short-term directional bias.
Our position: Considering the potential impact of the upcoming economic reports, we adopt a cautious stance. We are holding our short positions in which we got in around 1.079 as it created a double top rejecting the 1.080 resistance. If the EUR/USD pair demonstrates strength by breaching the 1.0800 resistance, it may present an opportunity for bullish entries. But that scansion seems unlikely as the USD just keeps on getting stronger. Conversely, a rejection at this level or the 1.076 level could see the continuation of the bearish trend. We continue to look for shorts as the outlook on the dollar stays bullish.