EUR/USD Technical Analysis – March 14, 2024

In today’s trading landscape, the EUR/USD pair exhibited increased activity during the Asian session, moving approximately 19 pips, indicating a slight uptick in volatility compared to previous days.

Current Market Setup:

The day’s Pivot Point is established at 1.09440, which interestingly coincides with both the 89EMA and 200EMA, suggesting a significant level of market equilibrium and potential decision point for the currency pair.

Resistance and Support Levels:

On the upside, we’re looking at Resistance levels positioned at 1.09679 (R1), 1.09877 (R2), and 1.10116 (R3). These markers will be crucial in determining the extent of bullish momentum should the pair embark on an upward trajectory.

Conversely, on the downside, Support levels are set at 1.09242 (S1), 1.09003 (S2), and 1.08805 (S3). These will serve as key thresholds to gauge bearish pressure and potential reversal zones.

Additionally, it’s worth noting yesterday’s trading range with the high at 1.0963 and the low at 1.092, which could provide additional context for today’s price movements.

Dollar Index (DXY) Influence:

At the time of writing, the DXY stands at 102.88, hovering just below its Resistance 1 level at 102.92. This proximity to a critical resistance could play a pivotal role in influencing EUR/USD movements, as a breakthrough or rejection at this level could signal corresponding weakness or strength in the EUR/USD pair.

Trading Strategy and Considerations:

Given the alignment of the Pivot Point with key EMAs, traders should closely monitor this area for potential breakout or bounce signals. A sustained move above the Pivot Point and past R1 could indicate bullish strength, potentially targeting higher resistance levels. Traders might consider long positions with appropriate risk management, eyeing R1 and possibly R2 as initial targets.

Conversely, a breakdown below the Pivot Point, especially if accompanied by a bearish shift in the DXY, could see the EUR/USD targeting lower support levels. In this scenario, short positions could be favored, with S1 and S2 serving as potential objectives.

Conclusion:

Today’s session presents a balanced field with clear markers for both bullish and bearish scenarios. The interplay between the EUR/USD pair and the DXY index will be particularly noteworthy. As always, traders should employ sound risk management practices, remain vigilant to shifts in market sentiment, and be prepared to adapt to unfolding price actions.

Trading our dreams into reality,

Mihai Paul Olteanu