EURUSD Technical Outlook: Analyzing Key Levels for Potential Breakout

EURUSD is still in Range. Last week it was expected to break in a direction but it was not able to break. According to the weekly chart, the pair is still in bearish bias until the break of the range is an upside. In this week we will observe the market to see a breakout of the range and if it can break the price level of 1.0710 then we can see the continuation of the bearish movement to the target is price of 1.0510. The scenario will be invalid if it breaks the upside of the range, this time price has changed its bias short-term to bullish toward the target of 1.1200 followed by 1.1300.In this week have some important fundamental issues on both of euro and the USD including the ECB president’s speech and NFP that will indicate further strength in those currencies.

Current Range and Bearish Bias

According to the weekly chart, EURUSD sustains a bearish bias within its range. The key levels to watch are pivotal in determining the pair’s next directional move. A crucial support level is identified at 1.0710. Should the EURUSD break below this level, it would likely signal the continuation of the bearish trend, with a target price of 1.0510. This scenario aligns with the prevailing bearish sentiment observed over the past weeks.

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Potential Upside Breakout

Conversely, if the EURUSD manages to break above the upper boundary of the range, it would invalidate the bearish outlook and shift the short-term bias to bullish. In such a scenario, key resistance levels come into play. The first target would be 1.1200, followed by a secondary target at 1.1300. A sustained move above these levels would indicate a significant change in market sentiment, favoring further upward momentum. Get our Forex Signals

Fundamental Influences

This week brings several critical fundamental factors that could influence the EURUSD’s movement. Notably, the European Central Bank (ECB) President’s speech and the Non-Farm Payroll (NFP) data from the United States stand out. These events are expected to provide insights into the economic strength and policy directions of both the Eurozone and the US, potentially driving volatility in the EURUSD pair.

Key Levels to Watch

  • Support Level: 1.0710
  • Bearish Target: 1.0510
  • Resistance Levels: 1.1200, 1.1300

Conclusion

In summary, the EURUSD remains in a range-bound state, with a bearish bias until a decisive breakout occurs. This week’s market action will be closely monitored, particularly around the support level of 1.0710 and the resistance level of 1.1200. The outcome of significant fundamental events, including the ECB President’s speech and NFP data, will likely play a crucial role in determining the next directional move for the EURUSD.

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