Slight move to the downside last week occured in combination with elevated levels of volatility, closing close to 1.16800.
Economic Calendar Analysis
Increased volatility should be anticipated comparing to previous week.
EUR/USD hourly chart analysis
FX pair is now at a critical juncture as it tests the major horizontal resistance level at 1.1718, which has served as a formidable ceiling in the past. The first line of dynamic support lies at the rising 50-period SMA around 1.1684, with a more significant support zone at the 1.1630 level. A sustained and decisive break above the 1.1718 resistance would be a significant bullish signal, likely opening the path towards the next resistance at 1.1750. However, if this resistance holds and sellers step in, a bearish rejection could lead to a pullback towards the support levels, keeping the pair within its broader trading range.Hourly Chart
EUR/USD daily chart's review
A convincing daily close above this level is required to signal the end of the consolidation and the continuation of the long-term uptrend. As long as the price holds above the critical support of the 50-day SMA, this bullish scenario remains the most likely. Conversely, a bearish reversal would require a decisive break and close back below the 50-day SMA, which would signal renewed weakness and could lead to a deeper correction towards the next major support at the 100-day SMA around 1.1039.Daily chart
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Traders sentiment is bearish
Continuing the trend from previous weeks, from trading sentiment perspective EUR/USD maintains its bearish sentiment, driven by a mix of macroeconomic headwinds and evolving market expectations.