EUR/USD recently fell through an ascending trend line on its daily time frame, but its potential reversal is still waiting to gain traction.
Will sellers return after this correction?
Check out these inflection points on the daily chart!
EUR/USD: Daily
EUR/USD Daily Forex Chart Faster with TradingView
Safe-haven demand continues to favor the U.S. dollar while the US-Iran war is ongoing, keeping EUR/USD safely below the broken ascending trend line on its daily chart.
However, the pair has since pulled up to retest the former support zone, which could now hold as resistance.
Are sellers just waiting to hop in?
EUR/USD is currently hanging out at the 38.2% Fib, which is right in line with the dynamic inflection points at the moving averages.Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on the U.S dollar and the euro, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
Should this hold as a ceiling, look out for a continuation of the drop to the swing low at S1 (1.1380) or even an extension of the selloff to the next bearish target at S2 (1.1200).
A larger pullback could still reach the 50% Fib that coincides with R1 (1.1760) so keep your eyes peeled for reversal candlesticks in case that area is tested. The line in the sand for a bearish correction could be the 61.8% level, as a strong break above this could clear the way for a rally back up to the swing high or even the 1.2000 major psychological mark.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment.
Promoted: The Analysis & Strategy are only half the Battle; Your Mindset is the Rest.
Today’s chart art zooms in on EUR/USD’s long-term correction. But as any pro will tell you, even the cleanest trend-following setup can fall apart if the trader doesn’t stay disciplined when price starts testing the level.
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Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
