EURUSD Technical Analysis / Forex Technical Analysis

EURUSD Technical Analysis – 31-July-2024

FxNews—The Euro trades bearish against the U.S. Dollar. The robust bearish trend began to cool down in today’s trading session after the price hit the June 5 low at ~1.079. Despite the recent pullback, the primary trend remains bearish because the EUR/USD price is below the 50- and 100-period simple moving averages in the 4-hour chart.

As of this writing, the pair broke above the July 24 low at ~1.082 and is trading at approximately 1.083. The chart below demonstrates the price, the key support and resistance levels, and the technical indicators utilized in today’s analysis.

As explained earlier, the pair is in a bear market. Interestingly, the awesome oscillator gives a divergence signal, suggesting the trading instrument might step into a consolidation phase or it has the potential to reverse from this point.

EURUSD Technical Analysis – 31-July-2024

The relative strength index indicator crosses the median line, meaning the Euro gains strength against the dollar.
The stochastic oscillator is also heading up, suggesting the downtrend weakens, and the price might rise to test the upper resistance levels.

EURUSD Forecast – 31-July-2024

The awesome oscillator divergence is a signal that should be taken more seriously. Therefore, the price of the EUR/USD is expected to rise. However, for this scenario to unfold, the market should hold above the June 5 low, the 1.079 mark. With this outlook, the bulls will likely leap to test the July 29 high at 1.086, backed by the 100-period simple moving average.

EURUSD Forecast – 31-July-2024

Furthermore, if the buying pressure exceeds 1.086, the next resistance area will be the July 22 high at ~1.09. Notably, the bullish scenario should be invalidated if the EUR/USD price dips below the key resistance at ~1.082, the July 24 low.

Also read: USD/PLN Forecast – 30-July-2024

EURUSD Bearish Scenario – 31-July-2024

The primary trend will remain bearish as long as the price is below the 100-period SMA. But for the downtrend to be triggered, the bears (sellers) must close and stabilize the price below the June 5 low at ~1.079. In this scenario, the bearish trend from the July 17 high at 1.094 will likely extend to the June 1 high at ~1.077.

Furthermore, a dip below 1.077 will likely pave the path to the June 1 high at 1.07 support.

EURUSD Support and Resistance Levels – 31-July-2024

Traders and investors should closely monitor the key levels below to make informed decisions and adjust their strategies accordingly as market conditions shift.

Support: 1.082 / 1.079 / 1.077 / 1.070
Resistance: 1.086 / 1.09 / 1.094

Disclaimer: This technical analysis is for informational purposes only. Past performance is not necessarily indicative of future results. Foreign exchange trading carries significant risks and may not be suitable for all investors. Always conduct your research before making any investment decisions.