EUR/USD Technical Analysis – March 22, 2024

The EUR/USD pair experienced a decline during the Asian session, dropping by 36 pips from the session’s high. This movement has set the tone for the day’s trading dynamics, with key levels now in focus for traders.

Current Technical Levels:

  • Pivot Point: 1.08864
  • Resistance Levels: R1 – 1.09173, R2 – 1.09736, R3 – 1.10045
  • Support Levels: S1 – 1.08301, S2 – 1.07992, S3 – 1.07429

The daily Pivot Point stands at 1.08864, serving as an immediate reference for intraday bullish or bearish bias. The price is currently fluctuating around this level, indicating a moment of indecision among traders.

Key Observations:

  • Resistance Levels: The first resistance (R1) is set at 1.09173. A break above this level could signal increasing bullish momentum, potentially leading the price towards the second resistance (R2) at 1.09736 and possibly extending gains to the third resistance (R3) at 1.10045.
  • Support Levels: On the downside, the first support (S1) is identified at 1.08301, near the Asian session’s low. A breach below this point could intensify selling pressure, pushing the pair towards the second support (S2) at 1.07992 and further down to the third support (S3) at 1.07429.
  • Moving Averages: Both the 89EMA and the 200EMA are positioned just under the Pivot Point, between 1.0868 and the Asian Low at 1.08310, aligning closely with the day’s first support level. This confluence enhances the significance of this zone, suggesting that it could act as a critical juncture for determining the day’s directional bias.

Trading Strategy:

Given the current market setup, traders should monitor the pair’s reaction around the Pivot Point and the nearby moving averages. A sustained move above the Pivot could invite buying opportunities, targeting R1 and potentially higher levels. Conversely, a drop below the moving averages and S1 could signal a bearish continuation, with targets set at lower support levels.

As always, traders should remain aware of the impact of external factors, such as economic releases and geopolitical events, which can cause sudden volatility in the market. Today’s focus will be on the Ifo Business Climate data from the Eurozone, which could significantly impact the EUR/USD pair’s movement.

In conclusion, maintaining a flexible approach and adhering to predefined risk management rules will be crucial for navigating today’s market conditions effectively.

Trading our dreams into reality,
Mihai Paul Olteanu