Baxia Markets
February 21, 2024

Key Levels in Focus: EURUSD Navigates Bullish Correction Phase

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Over the past 5 trading days, EURUSD has exhibited a bullish trend, breaking above the swing high of the previous bearish trend at 1.0805 (highlighted by the top of the green rectangle). Additionally, an ascending slope trendline has formed during this recent bullish movement.

Following the break of the swing high, it was a resistance now converted into a support zone, with the market currently testing both the support zone and the ascending trendline. Should the market break below this support zone, the next key support levels to watch are the EMA 200 or the recent swing low at 1.0762 (highlighted by the blue rectangle, representing the 50% retracement).image-png-Feb-21-2024-12-14-51-9232-PM
Furthermore, the EMAs have recently formed a golden cross, indicating a bullish trend. However, oscillator indicators are signaling a potential reversal. While both indicators currently point to a bullish trend, they are nearing the edge of reverting to bearish territory. The MACD's signal line is approaching a cross below the 0 line, while the RSI is between the 40 and 50% levels, edging closer to a bearish crossover below 40%.

Overall, EUR/USD remains bullish, albeit experiencing a short-term bearish correction. Key support levels to monitor include 1.0762, representing the 50% retracement of the recent bullish move.

Key Takeaways:

1. EUR/USD trends bullish, breaking above previous swing high at 1.0805.
2. Ascending trendline forms during recent bullish movement.
3. Support zone established at former swing high, currently tested alongside ascending trendline.
4. Potential support levels at EMA 200 and recent swing low at 1.0762.
5. EMAs form golden cross, signaling bullish trend, while oscillators approach bearish territory.
6. Short-term bearish correction expected within overall bullish trend. Watch 1.0762 for key support.

Key Economic Releases to Watch Today

USD, FOMC Member Bostic Speaks   

CAD, New Housing Price Index (MoM) (Jan) 

Forecast 0.1% vs Previous 0.0%




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