EUR/USD Technical Analysis – April 2, 2024

In today’s technical analysis of the EUR/USD pair, we delve into the currency dynamics as of April 2, 2024, highlighting key resistance and support levels that are pivotal for traders’ short-term strategies. The pair has been experiencing a notable downtrend, further accentuated by the latest market developments.

Current Market Scenario

As of Tuesday’s Asian trading session, the EUR/USD pair is lingering near a weekly low, trading just below the 1.0750 mark. This recent dip is primarily attributed to the strengthening U.S. dollar, buoyed by robust U.S. ISM PMI data. The market’s anticipation of upcoming German inflation data also contributes to the prevailing cautious sentiment, exerting additional selling pressure on the Euro.

Technical Outlook

Pivot Points and Resistance Levels:

  • Pivot Point: 1.07573
  • Resistance 1 (R1): 1.07837
  • Yesterday’s High/This Week & Month’s High: 1.07988
  • Resistance 2 (R2): 1.08251
  • Resistance 3 (R3): 1.08515

Support Levels:

  • Yesterday’s Low: 1.07310
  • This Week & Month’s Low: 1.07294

Despite a modest rebound from its intraday low, the EUR/USD pair’s overall sentiment remains bearish, with technical indicators signaling a potential extension of the current downward trajectory.

Daily Chart Analysis:

  • The moving averages on the daily chart are trending downwards, with the 200 SMA situated around 1.0840, just above the 50% Fibonacci retracement level of the recent 1.0694 to 1.0981 rally.
  • Technical indicators, including the Momentum and RSI, are trending towards oversold territory, suggesting that the pair may continue its decline.
  • A significant support level is identified at 1.0694, corresponding to February’s monthly low and the base of the recent price range.

4-Hour Chart Insights:

  • The 4-hour chart presents a bearish outlook, with the Momentum indicator decreasing sharply and the RSI hovering around 31, indicating nearing oversold conditions.
  • The 20 SMA on this timeframe shows a steep decline, reinforcing the bearish sentiment and limiting potential upward movements near the 1.0800 resistance level.

The technical analysis for the EUR/USD pair on April 2, 2024, paints a predominantly bearish picture, underpinned by strong U.S. dollar momentum and anticipatory caution ahead of significant economic data releases. With key technical indicators and moving averages aligning with this outlook, the focus now shifts to the next levels of support and resistance that may define the pair’s short-term movements. Traders should particularly watch the 1.0694 support level, as a break below this could signal further downside potential. Conversely, any recovery attempts will likely face resistance near the 1.0800 mark, with the pair’s ability to overcome these levels critical in determining its immediate direction.

Trading our dreams into reality,
Mihai Paul Olteanu