Baxia Markets
April 19, 2024

EURUSD Tests Key Levels Amid Bearish Momentum

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EURUSD has experienced a decline of over 70 pips since reaching yesterday's high. Despite this significant drop, the currency pair has failed to break the swing low at $1.0602. Currently, EURUSD is trading below the EMA 50 and is testing its strength, with key resistance and support levels in focus.

EURUSD's next potential resistance level is the upper band of the Bollinger Bands, should the EMA 50 break. Conversely, if the EMA 50 holds, we may see a test of the support at the swing low. The currency pair has been trading sideways within a 50-pip range, with the value area defining the upper range at 1.0663 and the lower range near $1.0602.image-png-Apr-19-2024-07-42-01-9906-AM

On the hourly timeframe, the sentiment for EURUSD appears bearish, with the EMA 50 positioned below the EMA 200. Both the MACD and RSI oscillator indicators echo this bearish sentiment, supporting the overall negative outlook.

If EURUSD breaks below the lower range close to $1.0602, it may suggest a further decline in the pair. On the other hand, a breakout above the upper range at 1.0663 could indicate a bullish reversal. Traders and investors should closely monitor these key levels and technical indicators to navigate the current market conditions effectively.

In summary, EURUSD is testing key levels and facing resistance below the EMA 50. With a bearish sentiment supported by technical indicators, the currency pair remains in focus for potential further declines or a bullish reversal. Traders should keep an eye on the $1.0602 support and 1.0663 resistance levels for potential breakout or breakdown scenarios in the coming sessions.


Key Takeaways:

  1. EURUSD falls over 70 pips but holds above swing low at $1.0602.
  2. EMA 50 currently acts as resistance, with Bollinger Bands upper band in focus.
  3. Hourly chart shows bearish sentiment with EMA 50 below EMA 200.
  4. Sideways trading observed within 50-pip range, with 1.0663 and $1.0602 as key levels.
  5. MACD and RSI indicators support the bearish outlook for EURUSD.

Key Economic Releases to Watch Today

GBP, Retail Sales

Actual 0.0% vs Forecast 0.3% vs Previous 0.1%

EUR, German PPI

Actual 0.2% vs Forecast 0.3% vs Previous -0.4%


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