Fundamental Analysis

• UK employment data has significantly worsened, with 135,000 unemployment claims filed.
• EURUSD also rose in response, reaching a technically crucial phase.
• Caution is needed ahead of tomorrow’s US CPI release.

EURUSD technical analysis

EURUSD has broken above the downward trendline and is approaching 1.10 USD. At the time of writing, it stands at 1.0995 USD. It has already attempted to break above 1.10 USD once but failed. This is the second attempt.

While it hasn’t yet broken the recent high, it seems to be only a matter of time. Market sentiment shows a high number of short positions, indicating a possible correction. The key point to watch is whether the downward trendline will act as a support level.

If confirmed as a support, the pair could potentially rise towards 1.1150 USD.

Day trading strategy (1 hour)

Analyzing the 1-hour chart of EURUSD, the pair has surged rapidly, with ongoing battles around the 1.10 USD round number. Traders might hesitate to buy at these highs. For cautious traders, it’s recommended to enter after confirming that the downward trendline has become a support level.

The day trading strategy is to buy on dips. Entry should be at the rebound from the downward trendline, with a target exit at 1.1059 USD. Consider exiting at 1.0975 USD as well.

Support/Resistance lines

Here are the support and resistance lines to consider moving forward:

• 1.10 USD – Round Number
• 1.113 USD – Previous High

Market Sentiment

EURUSD: 88% short, 12% long

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.