EURUSD has declined below the 100-hour moving average at 1.08733, prompting increased selling pressure. The price has approached the next target at 1.08174, which corresponds to the broken 61.8% retracement from the September 2024 to January 2025 decline.
Buyers have emerged at this support level, resulting in a price rebound towards the 100-hour moving average. However, upon reaching this resistance, sellers have re-entered the market, establishing a technical struggle between support at 1.08174 and resistance at 1.08733. Traders are now observing for a breakout from this range to determine the next price direction for EURUSD.
Current Trading Range
The earlier observations outline a well-defined trading range, with support at 1.08174 and resistance at 1.08733 shaping short-term price action. The break below the 100-hour moving average signalled growing momentum on the downside, creating conditions for more selling. Yet, once the price touched the 61.8% retracement level, there was an immediate reaction, indicating that buyers recognise this as an area of interest. The rebound that followed was met with renewed selling upon returning to the moving average, reinforcing its role as a barrier.
This means that for now, the current range between support and resistance remains intact. Until the price either moves above the established ceiling or below the identified floor, traders will be watching for price action signals that might indicate where the pair is headed next. If the price moves above the 100-hour moving average, buyers could become more confident, potentially pushing it higher towards the next resistance zone. On the other hand, should 1.08174 fail to hold, sellers may attempt to drive the pair lower, continuing the broader downward movement.
Short Term Strategies
Short-term trading strategies may revolve around this defined range as long as neither level gives way. Within the coming weeks, price developments around these boundaries will provide signals on whether momentum is shifting towards recovery or further decline. The presence of both buying and selling interest at key levels suggests an ongoing contest between opposing market forces. Holding within this range would mean conditions remain the same, while a break in either direction would indicate a shift, prompting traders to reassess their approach accordingly.
