EUR/USD
The euro and U.S. dollar (EUR/USD) major currency pair is, at any given moment, often the most-traded market in the entire world. Representing two of our most powerful and influential economies, it offers traders a huge range of trading opportunities. Trillions are traded on it every single day.Partially because of this, the EUR/USD is one of the most liquid currency pairs and is frequently volatile. The pair’s large trading volumes mean greater liquidity (and sometimes greater volatility) than almost any other financial markets can boast. This wealth of opportunities makes it a popular choice for forex traders.Various factors drive EUR/USD exchange rate movements, and understanding them can provide valuable insight into potential directions for the pair in future trading sessions. Trading the EUR/USD can potentially reap great rewards - but can also lead to sizable losses - so knowing your stuff around this pair is essential.
The EUR/USD currency pair is the most actively traded forex market in the world and is often used as a barometer of global risk sentiment. As such, it is important to know how to identify key drivers of the EUR/USD exchange rate. Fundamental analysis - i.e. studying economic indicators to identify potential trading opportunities - can provide valuable insight into what will move this currency pair in the short and long term.The lead up to major economic events like America's nonfarm payrolls or the latest ECB or Fed meeting, can cause increased interest in the EUR/USD pair and, with that, more liquidity and volatility. Even more influential can be extreme news from sudden, unexpected sources - for example a terrorist attack or a natural disaster in either the United States or Europe. As such, it's vital for fundamental analysis enthusiasts to keep up-to-date economic calendars of when all the biggest announcements are, such as Fed and ECB meetings and nonfarm payrolls.
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EUR/USD remains neutral for consolidations above 1.0601 temporary low. While stronger recovery cannot be ruled out, upside should be limited by 1.0723 support turned resistance. On the downside, break of 1.0601 will resume the decline from 1.1138 to 100% projection of 1.1138 to 1.0694 from 1.0980 at 1.0536 next. price actions from 1.1274 are viewed as a corrective pattern to rise from 0.9534 (2022 low). Current fall from 1.1138 is seen as the third leg. While deeper decline is would be seen to 1.0447 and possibly below. Strong support should emerge from 61.8% retracement of 0.9534 to 1.1274 at 1.0199 to complete the correction.All elements being clearly bearish, it would be possible for traders to trade only short positions (for sale) on EUR/USD as long as the price remains well below 1.0638 USD. The next bearish objective for sellers is set at 1.0564 USD. A bearish break of this support would revive the bearish momentum. The sellers could then target the support located at 1.0469 USD.
If there is any crossing, the next objective would be the support located at 1.0129 USD. Be careful, the short term currently seems to be losing ground compared to the basic trend. Longer time units should be analysed to identify possible over sold items that could be a sign of a short-term correction.Crossing the first support at 1.0564 USD would be a sign of a further potential price plummet. Sellers would then use the next support located at 1.0469 USD as an objective. Crossing it would then enable sellers to target 1.0129 USD. Caution, a return to above the resistance located at 1.0638 USD would be a sign of a possible consolidation phase of the short-term basic trend.One of the most commonly used technical analysis tools is the price chart. Price charts display historical prices over a specified time frame and allow traders to spot trends or patterns which may indicate potential opportunities for trade.Risk management is essential for any successful trader when trading the EUR/USD currency pair. This involves controlling your risk exposure and doing everything in your power to limit your potential losses and also to safeguard your possible profits.
The euro and U.S. dollar (EUR/USD) major currency pair is, at any given moment, often the most-traded market in the entire world. Representing two of our most powerful and influential economies, it offers traders a huge range of trading opportunities. Trillions are traded on it every single day.Partially because of this, the EUR/USD is one of the most liquid currency pairs and is frequently volatile. The pair’s large trading volumes mean greater liquidity (and sometimes greater volatility) than almost any other financial markets can boast. This wealth of opportunities makes it a popular choice for forex traders.Various factors drive EUR/USD exchange rate movements, and understanding them can provide valuable insight into potential directions for the pair in future trading sessions. Trading the EUR/USD can potentially reap great rewards - but can also lead to sizable losses - so knowing your stuff around this pair is essential.
The EUR/USD currency pair is the most actively traded forex market in the world and is often used as a barometer of global risk sentiment. As such, it is important to know how to identify key drivers of the EUR/USD exchange rate. Fundamental analysis - i.e. studying economic indicators to identify potential trading opportunities - can provide valuable insight into what will move this currency pair in the short and long term.The lead up to major economic events like America's nonfarm payrolls or the latest ECB or Fed meeting, can cause increased interest in the EUR/USD pair and, with that, more liquidity and volatility. Even more influential can be extreme news from sudden, unexpected sources - for example a terrorist attack or a natural disaster in either the United States or Europe. As such, it's vital for fundamental analysis enthusiasts to keep up-to-date economic calendars of when all the biggest announcements are, such as Fed and ECB meetings and nonfarm payrolls.
EUR/USD remains neutral for consolidations above 1.0601 temporary low. While stronger recovery cannot be ruled out, upside should be limited by 1.0723 support turned resistance. On the downside, break of 1.0601 will resume the decline from 1.1138 to 100% projection of 1.1138 to 1.0694 from 1.0980 at 1.0536 next. price actions from 1.1274 are viewed as a corrective pattern to rise from 0.9534 (2022 low). Current fall from 1.1138 is seen as the third leg. While deeper decline is would be seen to 1.0447 and possibly below. Strong support should emerge from 61.8% retracement of 0.9534 to 1.1274 at 1.0199 to complete the correction.All elements being clearly bearish, it would be possible for traders to trade only short positions (for sale) on EUR/USD as long as the price remains well below 1.0638 USD. The next bearish objective for sellers is set at 1.0564 USD. A bearish break of this support would revive the bearish momentum. The sellers could then target the support located at 1.0469 USD.
If there is any crossing, the next objective would be the support located at 1.0129 USD. Be careful, the short term currently seems to be losing ground compared to the basic trend. Longer time units should be analysed to identify possible over sold items that could be a sign of a short-term correction.Crossing the first support at 1.0564 USD would be a sign of a further potential price plummet. Sellers would then use the next support located at 1.0469 USD as an objective. Crossing it would then enable sellers to target 1.0129 USD. Caution, a return to above the resistance located at 1.0638 USD would be a sign of a possible consolidation phase of the short-term basic trend.One of the most commonly used technical analysis tools is the price chart. Price charts display historical prices over a specified time frame and allow traders to spot trends or patterns which may indicate potential opportunities for trade.Risk management is essential for any successful trader when trading the EUR/USD currency pair. This involves controlling your risk exposure and doing everything in your power to limit your potential losses and also to safeguard your possible profits.
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