EURUSD continues to decline, with the economic contraction in the Eurozone becoming more pronounced.【July 25, 2023】
Fundamental Analysis
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EURUSD Technical Analysis
The EURUSD fell below the important support band of USD 1.10 to around USD 1.06. The Eurozone PMI released yesterday showed a low reading, which intensified the Euro sell-off. The EURUSD continues to fall along the descending channel and hit an important support band at USD 1.06. Also, checking the daily chart, the 24-day moving average is in sight at USD 1.04, and the area around USD 1.04 to USD 1.06 is a thick support band, so it will take some time to break below it.
Day Trading Strategy (Hourly)
At the time of writing, we judge the market to be predominantly selling. However, we do not want to rush into selling, as an important support zone is in sight. We would like to pull back sufficiently to try to sell on the return. Specifically, we may try a test sell once the price is around USD 1.10. With the ECB’s policy rate announcement coming up, we would like to be aware of the possibility of a gradual reduction in volatility.
Support and Resistance Lines
The resistance line to be considered in the future is as follows
1.10 USD – Round number1.06 USD – Important support zone
Market Sentiment
EURUSD Sell: 55% Buy: 45%
Today’s Important Economic Indicators
Economic Indicators and EventsJST (Japan Standard Time)U.S. Consumer Confidence Index23:00
*Trading advice in this article is not provided by Milton Markets, but by Shu Fujiyasu Jr., a certified technical analyst.
Risk Disclaimer
This analysis is for educational purposes only and does not constitute investment advice. Trading forex and CFDs involves significant risk and may not be suitable for all investors. Past performance is not indicative of future results.
This analysis is for educational purposes only and does not constitute investment advice. Trading forex and CFDs involves significant risk and may not be suitable for all investors. Past performance is not indicative of future results.
