EUR/USD Steady Below Triple Top Pattern – Eyes on Breakout!
Arslan Butt • 2 min read
The EUR/USD pair is trading with a bullish bias at the 1.1978 level, facing immediate resistance at the 1.1994 level, amid a stronger Euro and weakness in the dollar. At the USD front, the broad-based U.S. dollar failed to stop its bearish bias and remained depressed on the day as investors continue to cheer the upbeat market mood, which makes the safe haven U.S. dollar weaker.
The U.S. dollar is holding near a 3-week low against a basket of currencies as U.S. bond yields dropped instantly after the Federal Reserve hinted that interest rates could stay low for longer. Therefore, the losses in the U.S. dollar were seen as one of the key factors that help the EUR/USD currency pair to limit its deeper losses. The U.S. Dollar Index that tracks the greenback against a bucket of other currencies dropped to 91.571.
Apart from this, the reason for the currency pair’s downside trend could be tied to the US-China tussle, which is getting worse after Beijing’s diplomat from Hong Kong indirectly warned the U.S. Meanwhile, Taiwan eyes strong ties with the U.S. despite China’s renewed criticism. Moreover, Johnson & Johnson’s vaccine stays blacklisted amid blood-clotting issues, probing the upbeat market sentiment and contributing to the currency pair losses.
EUR/USD Technical Levels
Pivot Point: 1.1927
EUR/USD – Trade Ideas
The EUR/USD pair is trading with a bullish bias at the 1.1978 level, facing immediate resistance at the 1.1994 level. On the four hourly timeframes, the pair has formed an upward channel that’s likely to drive bullish moves until the 1.2105 level. However, before this, the pair needs to violate the strong resistance level of 1.1994. It may find support at the 1.1922 area that’s extended by an upward channel. The MACD and RSI are driving buying trend in EUR/USD; thus, we have entered into the bullish trade today. Let’s target quick 40 pips above the 1.1994 level today. Good luck!