EUR/USD – EURO at Super Inflection point!
- Resistance Zone: 114.80 to 115.10
- Key Resistance: 113.40
- Major Pivot Point: 112.00
- Key Support Level: 110.70
- Support Zone: 108.30 to 108.00
- Last Analysis Date: Blue Vertical Line
- 200 Day SMA – Green Line
- 50 Day SMA – Red Line
- CBOE VIX – Volatility Index @ 18.90 -0.73 (-3.72%)
Trade Insights
EUR/USD Pair – Chart shows viable long positions above the Key Support level at 110.70, with the first target of the Pivot point at $112.00 and then the targeting the Key Resistance level at 113.40, with further advancement towards the Key Resistance zone at 114.80 to 115.10. (Trading View)
Alternatively, Short positions below the Key Support level @ 110.70 with the targe of Support Zone @ 108.30 to 108.00
Chart Analysis:
Directional bias: 2 weeks EUR/USD
EUR/USD chart shows that prices have been creating lower lows and are moving in a descending downwards channel since 25th May 2021. Various factors contributed to the drop from 1.22 to 1.08 in Euro, however, the pair has now made gains in the hope of a diplomatic solution between Russia and Ukraine.
Euro was sliding downwards below the midpoint of the descending channel. But yesterday it rallied strongly to jump towards the upper resistance limit of the channel on the optimism of the ongoing peace talks. The de-escalation news seems good for the Euro and investor confidence which could mean the recent low of 108.00 could have been the start of a super inflection point for the Euro for a change of direction upwards.
The weekly technical outlook for EUR/USD is still bearish as the prices are still far below their moving averages. The 50-day SMA red line is still moving downwards and the 200-day SMA is appearing ready to dive down. The prices are currently heading towards the 50 Day SMA line and any move above this could fuel optimism in investors. The 20-day SMA has already turned upwards as the price moved above it and another move above the 50-day SMA could possibly turn out to be a super Inflection point for the EUR/USD Pair. The RSI Indicator has moved above 50 points and a further push is possible.
Fundamental Overview:
Russian and Ukrainian Diplomats met in Turkey to discuss solutions to the ongoing war. They have announced progress has been made in ceasefire conditions. Moscow has agreed to reduce its military activity and combat operations around Kyiv for further dialogue. Euro has been one of the currencies that is most negatively impacted by the war. Due to the Eurozone’s geographical proximity to the conflict and its strong trade links with Russia. Since the war has started investor and consumer confidence has weakened and the economic growth forecast is significantly downgraded while inflation estimates have moved sharply higher. While there is extraordinary uncertainty and geopolitical risks that dampen the economic outlook, any talks of de-escalation and peace would work as a tailwind for the EUR/USD.
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