FX.co ★ Noahh | EUR/USD

EURUSD Trend Outlook: The price action analysis of the EUR/ USD currency pair is what we will be discussing today. It's essential to monitor the development of a candle analysis focused on today's price action trading strategy, particularly on the hourly chart. Here, the inner bar is executing well with a pending order from its upper boundary, and the trend is continuing upward, presently nearing the critical psychological resistance level of 1.16333 on the hourly chart. This area acts as a significant resistance zone on broader time frames, likely prompting a downward correction. From a technical analysis perspective, the instrument encounters psychological resistance, which may activate the double-top pattern, potentially leading to a substantial bearish correction within the overall uptrend. I'm puzzled by the recent rise in major currencies and the simultaneous decline of the dollar in the market. Indeed, the producer price index (PPI) was negative, but it's not a critical metric in this context. The movement occurred in a quiet market, coinciding with news releases. According to Bloomberg, there is speculation that investors are being encouraged to sell the dollar before the upcoming U.S. inflation data is published.

Although the PPI showed a decline, these figures pertain to the next period, not the ones due tomorrow, and this may explain today's increase, even though volumes remain low and the growth seems unusual. The key is the 1.16333 level (rotation reversal 6/8) on the daily EURUSD chart. It appears there's a second attempt to break above it. If today's session closes above 1.16333 and this level becomes support, the next target would be 1.17553 (stop reversal 7/8), as illustrated in the chart below. Alternatively, closing below 1.16333 could trigger a resumption of selling, though this scenario isn't being at the moment.