Markets Analysis

Fundamental Analysis

• A tripartite meeting between the government and the Bank of Japan was held, raising concerns about foreign exchange intervention.
• EURUSD recently formed two engulfing candlesticks.
• MACD has gone negative, indicating a downtrend.

EURUSD Technical Analysis

Analyzing the daily chart of EURUSD, two recent engulfing candlesticks suggest increasing selling pressure. Additionally, yesterday’s movement rebounded at the 90-day moving average, followed by the appearance of a bearish candle. A candlestick pattern of “bullish + bearish spinning top + bearish” has emerged, signaling a downtrend.

A key support zone is around 1.0799USD. It’s a price level that has reacted at least five times in the past, thus requiring attention.

Looking at the MACD, the histogram is below zero, entering a valley formation. Also, the MACD line is about to cross below zero. It seems advisable to take a bearish stance.

Day Trading Strategy (1-Hour Chart)

Analyzing the 1-hour EURUSD chart, both the 28 and 90 moving averages are trending downwards. A descending trendline can also be drawn, and the question is whether the trendline or moving averages will act as resistance.

The MACD analysis shows a lack of direction, making it difficult to decide. With the support line at 1.07990USD approaching, buying on dips could strengthen.

As a day trading strategy, consider probing sales if it breaks below 1.0799USD and 1.07990USD acts as resistance. If a stop loss is triggered, it could fall to around 1.0737USD.

Support and Resistance Lines

Key support and resistance lines to consider are as follows:

1.0799USD – A major monthly support line.

Market Sentiment

EURUSD Sell: 46% Buy: 54%

Today’s important economic indicators

*Trading advice in this article is not provided by Milton Markets, but by Shu Fujiyasu Jr., a certified technical analyst.