EURUSD Bearish Bias

EURUSD is in a bearish bias. It has tested the broken support at 1.1120 works as resistance now and the price rejected from that resistance after a strong bullish movement during the US Election. More bearish movement is expected now targeting 1.0730. There are some important fundamental issues in this week including the ECB president’s speaking and FED Chair testifying that will also indicate further strength of those currencies.

Key Points for EURUSD Technical Outlook:

– Bearish Bias: EURUSD remains in a bearish trend.
– Resistance at 1.1120: The pair tested and was rejected at this level.
– Next Target: 1.0730, a significant support zone.
– Fundamental Events:
– ECB President’s speech
– FED Chair’s testimony
– USD Strength: Supported by strong US economic data and favorable market conditions.
– Eurozone Challenges: Economic uncertainty and weaker-than-expected data.

Resistance at 1.1120 Tested

The EURUSD pair remains in a bearish bias. Recently, it tested the broken support level at 1.1120, which now functions as resistance. After a strong bullish movement during the US Election, the price was rejected at this resistance level, reinforcing the bearish trend.

Targeting 1.0730

With the rejection at 1.1120, we anticipate further bearish movement, targeting the 1.0730 level. This new support level is significant, as it could influence future price action and trading decisions.

Key Fundamental Events This Week

This week brings several important fundamental events that could impact the EURUSD pair. The European Central Bank (ECB) President is scheduled to speak, and the Federal Reserve (FED) Chair will be testifying. These events are expected to provide insights into the economic outlook and monetary policies of both the Eurozone and the US, which will likely affect the strength of their respective currencies.

Learn Effective institutional trading strategies that work.

USD Strength Factors

The USD continues to demonstrate strength due to robust economic data and favorable market conditions. Positive indicators from the US economy, including strong job numbers and steady growth, support the dollar’s dominance. This economic strength is a major factor in the ongoing bearish trend of the EURUSD.

Eurozone Economic Challenges

The Eurozone faces economic challenges that have hindered the Euro’s performance. Recent data has been weaker than expected, and economic uncertainty persists. Without significant positive developments, the Euro remains under pressure against the USD.

Key Levels to Monitor

• Resistance Level: 1.1120 (previous support)
• Bearish Target: 1.0730 (new support level)
• Fundamental Factors to Watch

Traders should closely monitor the speeches by the ECB President and the testimony of the FED Chair. These events are expected to provide valuable insights into future monetary policy directions and economic conditions, potentially influencing the EURUSD’s movement.

Summary

In summary, the EURUSD Technical Outlook indicates a continued bearish bias. The rejection at the 1.1120 resistance level, following the recent bullish movement, suggests that the pair is likely to target 1.0730 next. The strength of the USD, supported by positive economic data, combined with the economic challenges facing the Eurozone, points to further bearish movement. Monitoring this week’s key fundamental events will be essential for understanding potential impacts on the EURUSD pair’s direction.

Get our all trading analysis video on the YouTube channel: https://www.youtube.com/@preferforex_official