Fundamental Analysis

• China has denied the existence of trade negotiations with the United States, leading to a weakening of the USD.
• USDJPY continues to rise as no currency targets were demanded in the U.S.-Japan trade talks.

EURUSD Technical Analysis

Analyzing the daily chart of EURUSD, we observe that after forming a large bearish candlestick at a high level and pulling back, the pair is slightly rebounding again. The 26-day moving average is trending upward, suggesting that the overall uptrend is likely to continue.

EURUSD tends to react around round numbers, and the 1.10USD, 1.12USD, and 1.13USD levels are expected to act as strong support.

China’s denial of the U.S.-China trade talks has dampened expectations, leading to USD selling. Looking at the MACD, the histogram is below the signal line, indicating a possible corrective movement.

Day trading strategy (1 hour)

On the 1-hour chart of EURUSD, the candlesticks are trading below the 26-period moving average. The pair is facing resistance and failed to reach the 1.14USD level. If the MACD histogram falls below zero, it is generally considered a sell signal. As a corrective move, the price may drop toward the 1.12USD area.

For intraday trading, the short-term strategy is selling. A sell entry is considered when the MACD crosses below zero, with a plan to buy back around 1.12USD. The stop-loss should be placed if the price rises above 1.14USD.

Support/Resistance lines

Key support and resistance lines to consider:

• 1.1573USD – Recent High

Market Sentiment

EURUSD: Sell: 66% / Buy: 34%

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.