EUR/USD Technical Analysis – March 28, 2024

The EUR/USD pair experienced a day of limited volatility yesterday, with an Average True Range (ATR) of merely 29 pips, highlighting a cautious market sentiment. The currency pair oscillated between a high of 1.08388 and a low of 1.08108, reflecting a tight trading range as market participants await key economic releases.

Today’s Technical Landscape:

  • Pivot Point Analysis: The daily Pivot Point stands at 1.08252, serving as a potential fulcrum for today’s price action.
  • Resistance Levels: The first resistance (R1) aligns closely with yesterday’s high at 1.08395, suggesting a pivotal area for bulls to overcome. Further north, R2 is located at 1.08532, with R3 at 1.08675, slightly above this week’s peak of 1.08641, indicating potential targets for upward movements.
  • Support Zones: On the downside, the first support (S1) is positioned at 1.08115, nearly mirroring yesterday’s low, indicating a critical juncture for bears. S2 stands at 1.07972, close to the monthly low of 1.07980, while S3 is found at 1.07835, marking additional layers of defense for the pair.

Key Levels to Watch

Today’s trading strategy will closely monitor the 1.08 and 1.084 levels, as these price points could dictate the short-term directional bias of the pair. The vicinity of support and resistance levels to recent highs and lows underscores the significance of these markers in determining potential breakout or reversal points.

Trading Strategy

Given the anticipation surrounding the U.S. Initial Jobless Claims data set for release at 14:30 GMT, trading decisions will be deferred until after the economic indicator is published. This cautious approach stems from the potential for heightened volatility and market reactions to the jobless claims figures, which could significantly impact the EUR/USD pair’s trajectory.

As the EUR/USD hovers within a narrow trading band, today’s focus shifts to the upcoming U.S. labor market data, which could inject fresh momentum into the pair. Traders are advised to stay alert to the outcomes of the jobless claims report, as it may provide the necessary catalyst for a decisive move beyond the current range-bound conditions. With critical support and resistance levels in close proximity to recent price action, the market is poised for a potential breakout, contingent on the economic data’s implications.

Trading our dreams into reality,
Mihai Paul Olteanu