Fundamental Analysis

• European leaders reaffirm support for Ukraine and explore resuming peace negotiations.
• EURUSD surpasses the 1.05 USD range, reaching the 1.06 USD level.

EURUSD Technical Analysis

Analyzing the daily chart, EURUSD has seen a significant upward movement. Drawing the Fibonacci Expansion, the price has surpassed the 100% extension level at 1.056 USD.

Market sentiment indicates a strong concentration of short positions, accounting for 80% of traders. This suggests that the rise may have been fueled by stop-loss triggers.

The underlying driver appears to be optimism surrounding a Ukraine ceasefire, which could boost infrastructure investments and economic recovery expectations.

While a pullback is possible, 1.056 USD and 1.057 USD are expected to act as support levels. Monitoring the correction, traders should maintain a bullish outlook.

Day trading strategy (1 hour)

Examining the 1-hour chart, EURUSD has been moving within an upward channel but has now broken above it significantly.

• The RSI is currently at 78, indicating overbought conditions, which suggests an imminent correction.
• Avoid hasty trades and consider buying on dips when RSI approaches 50.

Day Trading Plan:

• Buy Limit: 1.057 USD
• Target: 1.072 USD (200-day moving average)
• Stop Loss: Below 1.055 USD

Support/Resistance lines

Key support and resistance lines to consider:

• 1.072 USD – 200-day moving average
• 1.057 USD – Major support level

Market Sentiment

EURUSD Sell: 79% / Buy: 21%

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.