Euro / U.S. Dollar
Short
Updated

EUR/USD Short Idea Analysis

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EUR/USD exhibits bearish potential on the daily timeframe, with the 1.17160–1.18070 zone acting as a key resistance area for a short setup.
Technical Analysis:
Price Action: Price is testing the 1.17160–1.18070 resistance zone, which aligns with prior highs and a rejection area. A bearish reversal pattern (e.g., shooting star or engulfing) could confirm the short.

Support/Target: Initial support at 1.1600, with a deeper target at 1.1500 if selling pressure accelerates.

Indicators: RSI is nearing overbought levels (above 65), suggesting a potential reversal. MACD shows weakening bullish momentum, supporting a bearish bias.

Fibonacci: The 1.17160–1.18070 zone aligns with the 78.6% Fibonacci retracement of the prior downmove, reinforcing resistance.

Risks: A break above 1.1820 could invalidate the setup. Watch for ECB policy updates or unexpected US data shifts.
Conclusion: The 1.17160–1.18070 resistance zone offers a compelling short opportunity for EUR/USD, backed by technical and fundamental factors. Use tight risk management due to potential volatility.


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