EUR/USD Technical Analysis – March 11, 2024

As we navigate through the trading landscape on March 11, 2024, the EUR/USD pair presents a compelling technical setup, reflecting the ongoing market dynamics and recent economic developments.

Current Technical Outlook:

The EUR/USD pair is currently exhibiting sideways movement, hovering around the 1.0940 mark during the Asian trading hours on Monday. This comes after the upbeat US Nonfarm Payrolls released on Friday, which has contributed to a stable US Dollar (USD) environment. Despite this, the pair maintains a close proximity to the immediate resistance barrier at the 1.0950 level.

Resistance Levels to Watch:

Traders should closely monitor the 1.0950 resistance level, as a break above could signal further bullish momentum. More significantly, surpassing the eight-week high of 1.0981 could open the path towards testing the psychological barrier of 1.1000. Technical indicators, including the 14-day Relative Strength Index (RSI) positioned above the 50 mark and the Moving Average Convergence Divergence (MACD) diverging above the signal line, support a bullish sentiment for the EUR/USD pair.

Should the pair break through these recent highs, we may see upward support intensifying, potentially propelling the EUR/USD towards January’s high of 1.1038, if surpassed.

Key Support Areas:

On the downside, the pair finds key support at the 23.6% Fibonacci retracement level of 1.0913, closely followed by the psychological level of 1.0900. A breach below this threshold could lead to further bearish pressure, with the pair possibly testing the nine-day Exponential Moving Average (EMA) at 1.0892. Subsequent levels to watch include the 38.2% Fibonacci retracement at 1.0871 and the major support level at 1.0850.

Market Sentiment and Strategy:

The market sentiment appears cautiously optimistic, with technical analysis indicating a potential for bullish momentum. However, traders should remain vigilant, as the recent sideways movement suggests a degree of uncertainty. It is advisable to watch for confirmed breakouts above resistance levels or breakdowns below support levels before making significant trading decisions.

Given the current technical landscape, traders might consider setting buy orders above the 1.0950 or 1.0981 levels to capitalize on potential upward movements. Conversely, setting sell orders below the 1.0913 or 1.0900 levels could be prudent if anticipating a downward correction.

Conclusion:

The EUR/USD pair stands at a critical juncture as we start the week. The interplay between technical indicators and recent economic data points to a market at the cusp of a directional move. As always, maintaining a disciplined approach to risk management and staying attuned to global economic developments will be key to navigating the fluctuations in the EUR/USD market.

Trading our dreams into reality,

The Quantum Strikes Team