EUR/USD Technical Analysis – March 5, 2024

EURUSD technical analysis - Quantum Strikes
EURUSD technical analysis - Quantum Strikes

In today’s trading landscape, the EUR/USD pair presents a tightly contested battleground around the pivotal 1.08519 mark. This level serves as our compass for the day, guiding potential movements and setting the stage for critical price action.

Key Levels to Watch:

  • Pivot Point: 1.08519. This central level acts as a fulcrum for today’s price movements. A decisive move away from this point could dictate the day’s trend.
  • Resistance Levels:
    • R1: 1.08704
    • R2: 1.08854
    • R3: 1.09040
    These are the barriers to the upside. Particularly, the first resistance at 1.08704 is crucial; surpassing this could open the path towards 1.09. However, the real test lies at 1.08670, yesterday’s high. Breaching this could confirm bullish momentum, potentially leading to a retest of the 1.09 zone.
  • Support Levels:
    • S1: 1.08368
    • S2: 1.08182
    • S3: 1.08032
    On the downside, breaking below our pivot leans towards bearish territory, with the initial target set at S1. A clear break below this pivot is essential for a downward trajectory towards the 1.08 area and below.

EMA Indicators:

Both the 89EMA and 200EMA are hovering around the 1.085 level, adding weight to its significance as a battleground for bulls and bears. These moving averages could act as dynamic support or resistance, influencing the pair’s short-term direction.

Trading Strategy:

Currently, the EUR/USD is trading around the pivot point, which we consider a “No man’s land zone.” In this area, clear directional moves are less predictable, and thus, we adopt a cautious stance. Here’s how we approach today:

  • Above the Pivot: Should the price ascend beyond 1.08519 and breach the 1.08670 (yesterday’s high), we might consider long positions, targeting the next resistance levels while keeping an eye on the EMA indicators for confirmation.
  • Below the Pivot: Conversely, a definitive move below 1.08519 could signal bearish intent. In this scenario, short positions may become favorable, with an initial aim at S1 and further down, depending on momentum and market sentiment.

Final Thoughts:

Today’s trading hinges on the battle around the 1.08519 pivot. The market’s decision here will likely set the tone for the remainder of the session. As always, remain vigilant for sudden shifts in market sentiment, especially in response to external news or economic indicators. Employ sound risk management, setting stop losses and take profits according to your trading plan and risk tolerance.

Stay tuned for updates as the market unfolds, and let’s approach today’s trading with strategic patience and precision.

Trading my dreams into reality,

Mihai Paul Olteanu