Baxia Markets
July 13, 2023

Euro Shows Signs of Strength as Traders Eye Key Resistance Levels

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The euro started the trading session on Thursday with an attempted rally, indicating potential follow-through strength. Market participants are now closely monitoring the 1.1250 level, a psychologically significant mid-century range that has historically played a crucial role. A break above this level could pave the way for further gains, with the 1.15 handle becoming the next target.

euro shows signs of strength on chart with key resistance levels


The 1.11 level, previously a resistance area, is expected to provide support on any pullbacks. The market continues to attract buyers, particularly as the US economy appears poised for relief from inflationary pressures. Although the short-term momentum may be overextended, the overall trend remains positive. Notably, the market previously formed a substantial ascending triangle, suggesting that technical traders will likely continue to drive prices higher.

The 50-Day Exponential Moving Average is currently situated near the 1.09 level, acting as short-term support and potentially serving as a market floor. Should prices drop further, the 200-Day EMA at the 1.0750 level becomes the next level of support. A breakdown below this level could trigger a significant selloff, although such a scenario is not expected in the near term. Long-term investors should monitor these support levels for potential shifts in the trend.


Optimistic Euro Outlook: Seizing Opportunities Amidst Dollar Weakness and Inflationary Concerns

Despite the possibility of a minor retracement, the euro is poised to continue its upward trajectory, as the US dollar remains weak against most currencies. A pullback could offer an opportunity for traders to enter the market and take advantage of favorable buying conditions. Ongoing inflationary concerns support the bullish outlook for the euro. Traders and investors should closely monitor developments in the market for potential long-term movements.

The euro's recent rally suggests continued strength, with traders eyeing the 1.1250 resistance level as the next key target. Supported by solid levels at 1.11 and the 50-Day EMA, the overall trend remains bullish. While short-term corrections are possible, the US dollar's weakness against other currencies is likely to sustain the euro's upward momentum in the foreseeable future.


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