EUR/USD Faces Crucial Test at Key Support Level
01 August 2024
EUR/USD is currently forming a clear technical setup. The price is moving downward within a wedge or flag pattern, marked by black lines. A key horizontal support around 1.08, marked in yellow, is acting as a psychological barrier. Thursday's trading brought a significant drop, suggesting this support might be tested again.
For trading, staying within the flag indicates a negative sentiment with lower lows and highs. A bounce off the yellow support followed by a breakout above the upper wedge line would signal a buy opportunity. Conversely, breaking the yellow support confirms a sell signal.
Let's watch closely: a breakout above the flag's upper line would target the orange horizontal resistance, while a drop below the yellow support solidifies the bearish outlook. This setup presents clear trading signals based on price movements in relation to the support and resistance levels.