EURUSD the most traded currency pairs in the world. This pair represents the world two largest economies and has faced most volatility since the establishment of the euro in 1999. Last week Eurozone has published the Flash manufacturing PMI and we have seen a significant decline on the data than the actual forecast. Also the German IFO business climate has declined from 85.9 points in March to 74.3 points in April. EURUSD was pushed below 1.07500 after the data was published on last Thursday where looks like the sellers are dominating.
If we look at the H4 time-frame, we can see EURUSD pair has found strong support at 1.07250 and also pair has been trading with this descending channel trendline for a while. At last Friday, pair was able to close the week well above 1.08000 level.Right now EURUSD pair is neutral and moving sideways with this 4 hour descending channel trendline. For taking any buy/sell order, we have to wait for the breakout of the channel trendline.
If we look at the daily chart, a strong resistance is seen at 1.08850 and support is seen at 1.07250 level. If the pair can break the resistance at 1.08850 we might see pair is challenging the next resistance at 1.11500 level. On the other hand if the pair breaks the support at 1.07250 area we might see strong selling pressure on EURUSD. This pair could push back to 1.06500 and 1.05500 level respectively for the upcoming days.
For free Forex education and free Forex signals you guys can join our public Telegram channel.
This trading analysis is only for getting an idea about the current market situation. This is not a signal. These can be used for education purposes only.