Peter Smith
The EUR/USD is stuck in a tricky spot right now. After forming what looks like a double top and then crashing toward 1.14, the pair has bounced back above 1.16 - but traders aren't convinced this rally has legs.
EUR/USD Technical Analysis: Bulls Fighting Uphill Battle
Friday's session was all about sideways movement, with EUR/USD hovering just above that crucial 1.16 mark. The recent price action tells a pretty clear story - we saw a double top formation followed by a nasty drop to 1.14, where buyers finally stepped in.
Now here's the thing about 1.14 - it's one of those big round numbers that tends to attract attention. So when the euro bounced from there, it wasn't exactly shocking. But even though we're back above 1.16, there's still that massive bearish candle from July 28 hanging over everything like a dark cloud.
That candle formed right after some trade talks between the US and EU went sideways, and it's creating serious headaches for euro bulls. Until EUR/USD can break above that level, we might just be looking at another failed rally - what traders call a "lower high."
EUR/USD Price Prediction: What's Next for This Choppy Pair?
Here's where things get interesting. Nobody's really sure if we're seeing a genuine shift in market structure or just another false dawn for the euro. It's honestly too early to call.
If EUR/USD breaks below the 50-Day EMA, that's going to freak out a lot of traders and probably send us straight back to 1.14. Anything below that level? That would be seriously bad news for euro supporters.
But flip the script - if we somehow manage to punch through 1.17, then suddenly 1.18 comes into play. And 1.18 isn't just any old level. It's been a brick wall for EUR/USD multiple times, creating that double top we mentioned earlier.
Peter Smith
