EURUSD Upside Momentum Continues to Steam Ahead With Overbought Conditions

EURUSD Upside Momentum Continues to Steam Ahead With Overbought Conditions

EURUSD Price Analysis – March 2

The euro continued to recover against the US dollar during the European trading session, while the pair headed past the level of 1.1100. Expectations that the Federal Reserve will lower interest rates have cut US yields, and the dollar has fallen sharply. EURUSD benefits from this dollar weakness.

Key Levels
Resistance Levels: 1.1515, 1.1239, 1.1172
Support Levels: 1.1085, 1.0879, 1.0779

EURUSD Long term Trend: Bearish

EURUSD for the first time since mid-January surpassed the level of 1.1100, mainly due to increased pressure from sellers impacting on the US dollar. In the larger structure, the downtrend from 1.1515 (high) has just resumed, and the previous deviation by the moving averages of 5 and 13 confirms the long-term bearish trend.

A steady breakthrough of 78.6% of the rollback from 1.0700 (low) to 1.1515 at the level of 1.1115 may open the way to re-testing the level of 1.0779. At the moment, the trend may stay bearish, while the resistance level of 1.1239 holds, in case of a strong rebound.

EURUSD Short term Trend: Bullish

The rebound of the currency pair from the level of 1.0779 today is growing higher. A break of 61.8% of the pullback from 1.1239 to 1.0779 at 1.1066 level increases the likelihood of a larger bullish reversal. The intraday bias stays on the rise for retesting the key resistance level of 1.1239 in the following.

On the other hand, breaking a minor support level of 1.0940 could change the bias back to the downside to retest the low level of 1.0779.

Instrument: EURUSD
Order: Buy
Entry price: 1.1100
Stop: 1.1085
Target: 1.1155

 

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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.