Fundamental Analysis

• The U.S. has announced an extension of the suspension of tariffs on certain Chinese goods, with the new deadline set for the end of August.
• Additionally, a White House spokesperson commented on the possibility of a U.S.-China summit, hinting at diplomatic developments ahead.

EURUSD Technical Analysis

Looking at the daily chart, EUR/USD continues its upward trend and is approaching the key psychological level of 1.1500 after breaking into the 1.14 range. The pair recently updated its local high, maintaining bullish momentum.

A key point of focus will be whether it can break above the previous high near 1.1570 from late April. Back then, a bearish engulfing pattern emerged around that level, followed by a sharp decline below 1.12. How the market reacts this time will be crucial.

Both the 52-day and 90-day moving averages are trending upward, supporting a gradual bullish bias.

Day Trading Strategy (1-Hour Chart)

On the hourly chart, the RSI has dipped below 70, suggesting a pause in the rally and a potential for short-term correction. The 52-period moving average on the 1-hour chart is also being watched closely. A buy-on-dip strategy is recommended near 1.1375, just below the 1.14 level. If RSI nears 50, stronger buying interest may emerge.

Trade Plan:

• Entry: Buy limit at 1.1375
• Take Profit: 1.1500
• Stop Loss: Below 1.1350

Support and Resistance Levels

Support and resistance levels to watch going forward:

• 1.1570: Previous daily high (late April)
• 1.1500: Psychological round number

Market Sentiment

EURUSD

• 70% short / 30% long

Today’s Key Economic Events

*Trading advice in this article is not provided by Milton Markets, but by Shu Fujiyasu Jr., a certified technical analyst.