EUR/USD Technical Analysis – March 18, 2024

Today’s EUR/USD technical analysis reveals a relatively quiet Asian session, with price action contained within a narrow 11 pip range, bouncing off the Asian low at 1.088. As European markets open, traders will be closely monitoring key technical levels to gauge potential market movements.

Pivot Point Analysis
The daily Pivot Point is established at 1.08863, serving as a critical juncture for intraday trading strategies. A breach above or below this level could dictate the directional bias for the day.

Resistance Levels
To the upside, traders should watch for Resistance 1 at 1.08996, followed by Resistance 2 at 1.09129, and Resistance 3 at 1.09262. These levels could act as potential barriers to upward price movements, with a break above each level potentially signaling further bullish momentum.

Support Levels
Conversely, to the downside, Support 1 is located at 1.08730, with subsequent levels at S2 (1.08597) and S3 (1.08464). These marks represent critical thresholds where buying interest may emerge to prop up the price or, if breached, could lead to an acceleration of bearish pressure.

Moving Averages
The 200-day Exponential Moving Average (EMA) is positioned just under Resistance 1, adding an extra layer of significance to this level. Meanwhile, the 89-day EMA aligns closely with the Pivot Point, reinforcing its role as a pivotal level for today’s trading.

Key Level to Watch
The 1.09 mark stands out as a crucial level for today’s trading session, marked by a confluence of factors including Friday’s high, the 200EMA, and Resistance 1. This convergence makes 1.09 a significant barrier to watch, as a break above this level could signal a shift in market sentiment and pave the way for further gains.

Conclusion
As the trading day unfolds, market participants will be keenly observing these technical levels, particularly the key 1.09 level, for signs of directional bias. With the economic calendar light on high-impact news, technical factors may play a more pronounced role in shaping today’s price action. Traders should remain vigilant, manage risks effectively, and be prepared to act on potential breakout or reversal signals based on the established technical framework.

Trading our dreams into reality,
Mihai Paul Olteanu