EURUSD Rebounds at 90-Day Moving Average, MACD Indicates Downtrend【March 28, 2024】
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
Economic indicators and eventsJapan timeAustralian Retail Sales9:30UK GDP16:00German Unemployment Rate17:55US GDP21:30Canadian FDP21:30
*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.
