Risk of Deeper Pullback As EURUSD Regains Traction Towards 1.1852 Level

EURUSD Price Analysis – August 24

The Euro recovered traction during the European session on Monday after the decline of 0.5 percent on Friday, but there is still a risk of a deeper pullback. The multi-month high pullback at 1.1965 level meets buyers at 1.1754 level, and the continuing extension past 1.1800 level today, triggers immediate positive signals.

Key Levels
Resistance Levels: 1.1980, 1.1940, 1.1916
Support Levels: 1.1806, 1.1709, 1.1685
EURUSD Long term Trend: Bullish
EURUSD holds beneath the moving average of 5 and the pressure stays downwards. Besides, on Friday the pair set a lower high implying the anticipated downtrend. Support awaits at level 1.1750, Friday’s low, followed by level 1.1709, a double-bottom from earlier this month.

Its resistance awaits at a level of 1.1852 level, a low swing from last week, followed by a level of 1.1916. But the positive outlook on the daily chart is further improved by bullish technical indicators. Therefore, any follow-through intensity towards horizontal resistance at level 1.1852 now seems like a strong likelihood amid some initial selling across the greenback.
EURUSD Short term Trend: Ranging
At the moment, the intraday bias in EURUSD holds steady. So long as the 1.1709 support level remains, the further increase may continue slightly in support. A breach of level 1.1965 may prolong the entire increase from level 1.0635.

Nonetheless, given the state of bearish divergence in 4 hrs RSI, a breach of 1.1709 level may validate short-term topping. With the ascending trendline (now at level 1.1685) the intraday bias is shifted back to the downside.

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