DISCLAIMER: The following content is for informational purposes only and does not constitute financial advice. Trading involves significant risk of loss. Past performance is not indicative of future results. Always conduct your own research and consider your financial position before making any investment decisions.
The euro has staged an impressive six-day winning streak and now sits at a critical technical juncture with the 20-EMA providing support and key resistance levels ahead.
Entry Zone: Buy dips to 1.1570-1.1580 area
Stop Loss: Below 1.1545
Targets: 1.1626 resistance first, then 1.1668 if momentum continues
Catalyst Watch: ECB speakers and US jobless claims data
Trading Rationale
The EUR/USD shows compelling bullish structure:
- Price action forming an ascending triangle pattern with higher lows
- 20-EMA (red line) now acting as dynamic support
- Stochastic oscillator showing continued upward momentum
- End of US government shutdown removing one uncertainty from markets
The diverging central bank outlooks continue supporting EUR/USD, with ECB’s Schnabel stating rates are “absolutely” at appropriate levels while markets still price a 60% chance of Fed rate cut in December.
The key level to watch is 1.1626 – a clean break above could accelerate gains toward the 1.1668 resistance. Traders should monitor US jobless claims data today for potential volatility.
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