EUR/USD Technical Analysis – March 20, 2024

Today’s EUR/USD trading session began with a notable movement as the price ascended beyond yesterday’s high, peaking at 1.08710 during the Asian session. This upward movement sets a new tone for the day’s trading dynamics.

Pivot Points and Key Levels

The daily Pivot Point is established at 1.08588, serving as a critical juncture for determining market sentiment and potential directional moves.

Resistance Levels:

  • Resistance 1 (R1): 1.08828
  • Resistance 2 (R2): 1.09006
  • Resistance 3 (R3): 1.09246

Support Levels:

  • Support 1 (S1): 1.08410
  • Support 2 (S2): 1.08170
  • Support 3 (S3): 1.07992

Technical Indicators and Market Sentiment:

The 200 Exponential Moving Average (EMA) aligns with the high of the Asian session, indicating a significant resistance level. Just 6 pips below, the 89EMA provides additional insight into the market’s momentum and potential areas of support or reversal.

Critical Observations for Today’s Trading:

  • Upside Focus: The psychological level of 1.09, coinciding with the day’s Resistance 2, stands out as a pivotal area. A breach above this level could signal further bullish momentum, potentially leading to a test of Resistance 3 at 1.09246.
  • Downside Attention: Conversely, yesterday’s low at 1.08347 represents a crucial support level. A move below this point could indicate bearish sentiment, pushing the pair towards Support 1 and possibly extending losses to Support 2 at 1.08170.

Trading Strategy:

Given today’s technical setup and the anticipation surrounding the Fed’s interest rate decision, traders should exercise caution. The market may experience heightened volatility, especially around key economic announcements. It’s advisable to monitor the price action closely around the identified resistance and support levels, adjusting strategies accordingly.

Conclusion:

Today’s EUR/USD trading landscape is marked by significant technical levels and the looming Federal Reserve announcements. Traders should remain vigilant, ready to adapt to rapid changes in market conditions, and ensure risk management practices are in place to navigate the potential volatility effectively.

Trading our dreams into reality,
Mihai Paul Olteanu