28.07.202323:35 Forex Analysis & Reviews: Technical analysis of EUR/USD for July 28, 2023

Overview :

The euro-dollar's medium-term trend reversed to the upside this week. The price broke out resistance levels of 1.0978 and 1.1082 and the target area 1.1189. Then, the goal zone 1.1245 was reached. However; the pair has rebounded from the bottom of 1.1245 to close at 1.1145.

The first support level is seen at 1.1082, the price is moving in a bearish channel now. The euro continues to see a lot of choppiness at this time. Such a strong downpward move indicates that the trend will likely continue. So, we can expect a correction this week and reach advantageous selling prices at the price of 1.1082.

We can consider new shorts there according to the pattern, with a target at last week's low. The EUR/USD pair continues to move downwards from the level of 1.1245 . The pair dropped from the level of 1.1245 to the bottom around 1.1145. RSI readings are worth noting, too. It suggests oversoldness, so a corrective pattern will likely develop in the medium term.

Then, a downtrend will continue. IThe euro experienced a modest drop, breaching the 1.11145 level but showing signs of uncertainty. As market participants grapple with the impact of diverging monetary policies and inflation concerns, evaluating the euro's trajectory becomes crucial. This article explores the prevailing factors influencing the euro's performance and identifies potential selling opportunities amid long-term pullbacks.

The first support level is seen at 1.1145, the price is moving in a bearish channel now. Furthermore, the price has been set below the strong resistance at the level of 1.1145, which coincides with the 61.8% Fibonacci retracement level. This resistance has been rejected several times confirming the veracity of a downtrend.

Additionally, the RSI starts signaling a downward trend. As a result, if the EUR/USD pair is able to break out the first support at 1.1145, the market will decline further to 1.1082 in order to test the weekly support 2. Consequently, the market is likely to show signs of a bearish trend. So, it will be good to sell below the level of 1.1145 with the first target at 1.1082 and further to 1.0978. On he other hand, stop loss is to be placed above the level of 1.1245.

The EUR/USD pair broke resistance which turned to strong support at the level of 1.1141 yesterday. The level of 1.1141 coincides with 61.8% of Fibonacci, which is expected to act as major support. Since the trend is above the 61.8% Fibonacci level, the market is still in an uptrend. From this point, the EUR/USD pair is continuing in a bullish trend from the new support of 1.1141.

The RSI starts signaling an upward trend, as the trend is still showing strength above the moving average (100) and (50). Thus, the market is indicating a bullish opportunity below 1.1141. Currently, the price is in a bullish channel. According to the previous events, we expect the EUR/USD pair to move between 1.1141 and 1.1300.

On the H1 chart, resistance is seen at the levels of 1.1250 and 1.1300. Also, it should be noticed that, the level of 1.1141 represents the daily pivot point. Therefore, strong support will be formed at the level of 1.1141 providing a clear signal to buy with the targets seen at 1.1250.

If the trend breaks the support at 1.1241 (first resistance) the pair will move upwards continuing the development of the bullish trend to the level 1.1300 in order to test the daily resistance 2. However, stop loss is to be placed below the level of 1.1141.