EUR/USD Technical Analysis – March 26, 2024

Asian Session Review: The EUR/USD pair experienced a narrow trading range during the Asian session, marking the low at 1.0836 and reaching a high at 1.0853, which aligns closely with today’s Resistance 1 (R1) at 1.08517. The pair saw a modest increase of 17 pips from the low to the high.

Today’s Key Technical Levels:

  • Pivot Point: 1.08270
  • Resistance Levels: R1 at 1.08517, R2 at 1.08671, and R3 at 1.08918.
  • Support Levels: S1 at 1.08116, S2 at 1.07869, and S3 at 1.07715.

Indicator Insights: Both the 89-period Exponential Moving Average (EMA) and the 200-period EMA are converging around the 1.0837 level, indicating a potential area of equilibrium or a battleground between buyers and sellers.

Previous Session Highlights: Yesterday, the pair recorded the lowest price of the week at 1.08022, which is perilously close to the monthly low of 1.07980, underscoring the significance of the 1.08 level as a major support zone. Conversely, the high from yesterday was noted at 1.08424, providing a short-term ceiling for the pair.

Technical Outlook: The EUR/USD is currently navigating through a critical juncture, with the 1.08 level emerging as a significant support threshold that traders should monitor closely. A breach below this level could signal further bearish momentum, potentially leading to new lows for the month.

Conversely, if the pair maintains above the daily Pivot Point and challenges the R1 at 1.08517, we might see an attempt to reclaim higher ground. However, the convergence of the EMAs around 1.0837 could act as a temporary barrier, making it a key level for intraday traders to watch.

Given the proximity of the current price to both key support and resistance levels, traders should prepare for potential volatility, especially with the upcoming economic releases from the US. A clear break above or below the noted technical levels could provide directional cues for the pair.

Conclusion: Traders should remain vigilant and responsive to price action around these critical levels, especially in light of the upcoming economic data which could significantly impact market sentiment and the EUR/USD trajectory. The 1.08 support level is particularly crucial, as a sustained move below could intensify bearish pressure, while a rebound from this level could offer bullish respite.

Trading our dreams into reality,
Mihai Paul Olteanu