Fundamental Analysis

• EURUSD rebounds and rises at the upper limit of the cloud.
• The Fibonacci 61.8% acts as a resistance line, with the round number of 1.10 USD also looming.
• A trading range between 1.09 USD and 1.10 USD may form.

EURUSD Technical Analysis

Analyzing the daily chart of EURUSD, it has broken above the upper limit of the Ichimoku cloud, then retraced at the 61.8% level. However, the 1.09 USD area, where the 50% retracement and the upper limit of the cloud overlap, seemed to be strong. Currently, it is trading around 1.0950 USD.

There has been a range trading between 1.09 USD and 1.10 USD in the past. Today, the US PPI and retail sales will be announced, which requires attention to movements driven by the USD.

Day Trading Strategy (1-Hour Chart)

Analyzing the 1-hour chart of EURUSD, there are signs of a decline below the conversion line of the Ichimoku Kinko Hyo. However, it’s important to be aware of the range trading on a daily basis. There is a sense of a lack of material in the 1-hour chart as well, forming a range trading environment.

With the round number of 1.10 USD above, the position ratio is 84% sell, indicating significant resistance. There seems to be insufficient material to surpass 1.10 USD yet. Therefore, consider shorting around 1.10 USD with an eye for a short-term rotation.

The day trading policy is to short new positions from the highs of 1.099 to 1.1100 USD, looking to buy back around the lower limit of the range at 1.092 USD. Stop if it clearly surpasses 1.125 USD.

Support and Resistance Lines

The following are the support and resistance lines to consider:

1.10 USD: Round number

1.0970 USD: Daily Fibonacci 61.8%

1.0917 USD: Daily Fibonacci 50%

Market Sentiment

EURUSD Sell: 84% Buy: 16%

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.