EUR/USD Price Analysis: Bullish Bias Continues
Technical Analysis
The EUR/USD pair has been on an upward trend, trading around 1.0850 during the Asian session on Monday. A technical analysis of the daily chart reveals a bullish bias, as the pair moves within an ascending triangle pattern.
- Ascending Triangle: The EUR/USD pair is moving within an ascending triangle pattern, indicating a possible bullish continuation.
- Momentum Indicator: The 14-day Relative Strength Index (RSI) is positioned above 50, further confirming the bullish bias.
Support and Resistance Levels
- Immediate Support: The immediate support level is located at the 21-day Exponential Moving Average (EMA) at 1.0819, followed by the psychological level of 1.0800.
- Resistance: The upper boundary of the ascending triangle, around 1.0900, acts as the primary resistance level.
Trading Strategy
Based on the technical analysis, a potential trading strategy could be:
- Buy: If the pair breaks above the upper boundary of the ascending triangle, traders could consider a buy position, targeting the psychological level of 1.0900.
- Sell: If the pair breaks below the lower boundary of the ascending triangle, traders could consider a sell position, targeting the 1.0700 level.
Additional Technical Indicators
- Daily SMA20: 1.0822
- Daily SMA50: 1.0773
- Daily SMA100: 1.0808
- Daily SMA200: 1.0788
Previous Daily Levels
- High: 1.0882
- Low: 1.0811
Previous Weekly Levels
- High: 1.0889
- Low: 1.0788
Previous Monthly Levels
- High: 1.0895
- Low: 1.065
Fibonacci Levels
- Daily Fibonacci 38.2%: 1.0855
- Daily Fibonacci 61.8%: 1.0838
Pivot Points
- Daily Pivot Point S1: 1.0812
- Daily Pivot Point S2: 1.0776
- Daily Pivot Point S3: 1.0741
- Daily Pivot Point R1: 1.0883
- Daily Pivot Point R2: 1.0918
- Daily Pivot Point R3: 1.0954
Conclusion
The EUR/USD pair maintains a bullish bias within the ascending triangle pattern. A break above 1.0900 could extend the upward momentum, while a break below 1.0800 could signal a potential trend reversal. Traders should monitor the key support and resistance levels and use appropriate risk management strategies when trading this pair.