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.
EURUSD Technical Analysis – 31-July-2024
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.
- 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.
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
