Saad Ullah
EUR/USD traders are staring down a pivotal week. After bouncing from recent lows, the euro is now testing levels that will either confirm a recovery attempt or send it tumbling back down. The setup is clean, the levels are obvious, and the next few sessions could define the trend for weeks to come.
Two Ways This Plays Out
If bulls can actually break above 1.1730, we're probably looking at a run toward 1.1770-1.1810. But if resistance holds like it should, 1.1650 becomes the first target, with 1.1590 waiting below that.
The setup is straightforward. EUR/USD is at resistance, dollar strength continues, and the technical levels are crystal clear. As Mahedi Hasan puts it - plan the trade, trade the plan. That's exactly what next week is all about.
Three Critical Levels Everyone's Watching:
- Resistance Zone (1.1730): This is where sellers are expected to show up. If EUR/USD can't punch through here, we're likely heading back down fast.
- First Support (1.1650): The line in the sand for bulls. Break this and things get ugly quickly.
- Lower Support (1.1590): The major bearish target if momentum really picks up to the downside.
The 4-hour chart is painting a clear picture - potential rejection at resistance followed by a drop back toward that 1.1650-1.1590 zone. It's textbook technical analysis playing out in real time.
The dollar just won't quit. Safe-haven demand keeps flowing into USD while the euro struggles with its own set of problems. The Fed's staying cautious while the ECB is dealing with weak eurozone growth - that policy gap isn't helping EUR/USD bulls. Add in some macro uncertainty and upcoming US data, and you've got a recipe for volatility.
Saad Ullah
