EUR/USD Technical Analysis – April 18, 2024

EUR/USD Technical Analysis – April 18, 2024
EUR/USD Technical Analysis – April 18, 2024


In today’s foreign exchange market, the EUR/USD pair shows signs of retracement following a sequence of bearish movements. After closing lower in the past five trading days, the currency pair is currently in its second day of retracement. Investors and traders are closely monitoring key support and resistance levels to gauge the next directional moves. The Dollar Index (DXY), which measures the strength of the USD against a basket of currencies, stands at 105.81, providing a backdrop for the movements observed in the EUR/USD pair.

Current Pivot Points and Price Levels

Today’s trading activity has centered around the daily Pivot Point for EUR/USD, set at 1.06527. Price levels to watch include:

  • Resistance Levels:
    • Yesterday’s high: 1.06794
    • R1: 1.06992
    • R2: 1.07260
    • R3: 1.07725
  • Support Levels:
    • S1: 1.06259
    • Yesterday’s low: 1.06061
    • S2: 1.05794
    • S3: 1.05526

These levels are crucial for traders utilizing pivot points to identify potential reversal points or breakout scenarios.

Weekly and Monthly Analysis

This week, the EUR/USD oscillated between a high of 1.06902 and a low of 1.06013, indicating a relatively narrow trading range as market participants assess various economic indicators and geopolitical news. From a broader perspective, the monthly high and low stand at 1.08850 and 1.06013, respectively, highlighting the pair’s volatility over a longer period.

Market Sentiment and Outlook

Given the recent price action and the current position of DXY, the EUR/USD pair’s market sentiment leans towards caution with a bearish undertone. Traders should keep an eye on the resistance and support levels mentioned, as a breach of any of these could signify a stronger directional move. The ongoing retracement phase might offer short-term trading opportunities, particularly if the pair tests and respects the highlighted pivotal levels.

Trading our dreams into reality,
Mihai Paul Olteanu