EURUSD Decline Continues, Caution Builds Ahead of US CPI【September 10, 2024】
Fundamental Analysis
Japan’s GDP was unexpectedly downgraded, leading to a retreat in interest rate hike expectations and a weaker yen.
Caution is building ahead of the US CPI release and the presidential candidate debate.
EUDUSD technical analysis
Analyzing the daily chart of EURUSD. The pair was engaged in a battle around the 28-day moving average but formed a bearish engulfing pattern and declined, marking a retracement high. With mixed results from US economic indicators and a view that conditions are not too negative, the USD is being bought.
The 38.2% retracement level is around 1.0996 USD. The recent low at 1.1026 USD is crucial; a break below this level would signal the start of a downtrend. However, the 1.10 USD level is likely to act as significant support. Given its status as a round number, as well as aligning with Fibonacci retracement and Pivot S2, it will be challenging to break it in a single move. There are many factors suggesting a potential rebound.
Focus today should be on whether EURUSD breaks below 1.1026 USD.
Day trading strategy (1 hour)
Analyzing the hourly chart of EURUSD. The pair is in a downtrend and approaching the recent low of 1.1026 USD. A natural expectation would be a decline toward the 38.2% level. The MACD histogram is also decreasing, suggesting a downtrend.
However, it is difficult to break 1.10 USD easily. A rebound is anticipated today.
The day trading strategy is to expect a rebound from 1.10 USD, placing a buy limit order. Set a buy limit at 1.0995 USD, with a target exit around 1.1035 USD. If the price drops to 1.0945 USD, set a stop loss.
Support/Resistance lines
Support and resistance lines to consider are as follows:
1.10 USD – Round Number / Fibonacci / Pivot S2
Market Sentiment
EURUSD: Sell 44% Buy 56%
Today’s important economic indicators
Economic indicators and eventsJapan timeUK Employment Statistics15:00Germany Consumer Price Index15:00OPEC Monthly Report20:00
*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.
