Fundamental Analysis

• Weak French and German PMIs Weaken the EUR
• EURUSD Facing Potential Double Top Formation
• EURUSD Faces Resistance at 1.12 USD, Unable to Break Through

EURUSD technical analysis

Analyzing the daily chart of EURUSD. EURUSD is currently supported by the 28-day moving average (MA). It may also be forming a double top pattern. With weak French and German PMIs, EUR selling pressure has intensified.

If EURUSD falls below the 28-day MA, it could decline to around 1.105 USD. The RSI is at 55, indicating that a pullback could still occur. With the ECB continuing to implement rate cuts, EURUSD might be subject to further selling pressure.

Day trading strategy (1 hour)

Analyzing the 1-hour chart of EURUSD. EURUSD is trading around the 200-day moving average (MA). Following the PMI release yesterday, EURUSD plunged. Although it rebounded from the 200-day MA, the upward momentum didn’t continue.

The RSI is at 41, and the focus is on whether EURUSD will break below the 200-day MA again.

The day trading strategy is to sell. If EURUSD breaks below the 200-day MA, a sell entry should be made, with a take-profit target around 1.105 USD. If it rises above 1.1150 USD, a stop should be placed.

Support/Resistance lines

The following support and resistance levels should be considered going forward:

• 1.12 USD – Round Number
• 1.105 USD – Fibonacci 100% Level

Market Sentiment

USDJPY: Sell 32%, Buy 68%

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.