EUR/USD Analysis Summary Today
- Overall Trend: Bearish Technical Correction
- Support Levels for EUR/USD Today: 1.1590 – 1.1530 – 1.1440
- Resistance Levels for EUR/USD Today: 1.1800 – 1.1860 – 1.1920
EUR/USD Trading Signals:
- Buy EUR/USD from the support level of 1.1650 with a target of 1.1800 and a stop-loss at 1.1560.
- Sell EUR/USD from the resistance level of 1.1800 with a target of 1.1500 and a stop-loss at 1.1880.
Technical Analysis of EUR/USD Today:
For two consecutive sessions, the EUR/USD pair has been rebounding from the support level of 1.1576 – the pair’s lowest level in two months. Gains extended to the resistance level of 1.1768, and the price is currently stabilizing around 1.1730 at the time of writing. According to performance on reliable trading platforms, the “Greenland Deal” continues to dominate the narrative for the second straight day, as traders begin to fear this is more than just a passing headline.
Generally, financial markets perceive heightened risks associated with the confrontation between the United States and Europe over the Greenland issue. As of Tuesday, Trump did not appear willing to back down from his stance on annexing Greenland to the United States, meaning that the UK and the EU will face a 10% tariff starting February 1st.
According to Forex market activity, the U.S. Dollar tends to decline as investors realize the negative economic impact of tariffs, which are largely borne by American consumers. Conversely, the Euro tends to benefit as a “large” and more liquid alternative to the U.S. Dollar, even if it is the party directly hit by Trump’s tariffs.
In general, Trump’s recent statements represented a new escalation in the Greenland dispute and confirmed the deterioration in relations between the United States and the European Union, keeping financial markets on edge. However, the euro avoided sustained losses. Its strong inverse relationship with the US dollar (USD) provided some protection, as the dollar came under pressure following Trump’s latest tariff threat.
EUR/USD Opportunities for a Bearish Breakout
The EUR/USD pair’s upward trend, as seen on the daily chart, could gain positive momentum if bulls manage to push the currency above the psychological resistance level of 1.1800. Recent gains have pushed the 14-day Relative Strength Index (RSI) towards 57, away from the neutral line, suggesting bullish momentum towards stronger upward levels if investor sentiment improves amid the recent US-EU dispute over the Greenland trade deal. Technically, the MACD indicator is also trending upwards, awaiting further positive momentum.
A EUR/USD a bearish scenario on the daily chart would require bears to push the currency back towards the support levels of 1.1655 and 1.1580, respectively. The EUR/USD’s direction today will be influenced first by statements from European Central Bank President Lagarde at 9:30 AM Egypt time. Then, most importantly, statements from US President Trump at 3:30 PM Egypt time.
Trading Advice:
We advise waiting for the EUR/USD to break through the 1.1800 resistance level before considering selling again. However, never take risks, no matter how strong the available currency trading opportunities may seem.
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