Despite the Euro recent appreciation since February 11—gaining more than 2%—a new bearish bias has appeared, triggering a minor downside correction.
The temporary strengthening of the U.S. dollar is occurring as markets await the release of the Federal Reserve meeting minutes scheduled for tomorrow.
Possible New Trend Formation
The recent upward movement in favor of the euro has created progressively higher lows since mid-January and early February. These higher lows suggest the potential formation of a new short-term uptrend.
However, the price is currently testing a key resistance zone. Until a new higher high is confirmed, it is too early to validate a sustained bullish bias in EUR/USD.
RSI Indicator
The RSI remains above the 50 level, indicating some bullish momentum.
However, its slope has started to decline as the price approaches resistance.
If this trend continues, bearish pressure from the last session may gain more relevance.
ADX Indicator
The ADX line remains below 20, signaling neutrality in most recent price movements.
This lack of a clear trend makes it difficult for EUR/USD to sustain the short-term uptrend.
If the ADX remains neutral in the coming sessions, price action is likely to remain sideways rather than forming a strong directional move.
Key Levels to Watch:
By Julian Pineda, CFA – Market Analyst
The temporary strengthening of the U.S. dollar is occurring as markets await the release of the Federal Reserve meeting minutes scheduled for tomorrow.
Possible New Trend Formation
The recent upward movement in favor of the euro has created progressively higher lows since mid-January and early February. These higher lows suggest the potential formation of a new short-term uptrend.
However, the price is currently testing a key resistance zone. Until a new higher high is confirmed, it is too early to validate a sustained bullish bias in EUR/USD.
RSI Indicator
The RSI remains above the 50 level, indicating some bullish momentum.
However, its slope has started to decline as the price approaches resistance.
If this trend continues, bearish pressure from the last session may gain more relevance.
ADX Indicator
The ADX line remains below 20, signaling neutrality in most recent price movements.
This lack of a clear trend makes it difficult for EUR/USD to sustain the short-term uptrend.
If the ADX remains neutral in the coming sessions, price action is likely to remain sideways rather than forming a strong directional move.
Key Levels to Watch:
- 1.02373 – Distant Support: Lowest level in the past two months.
Persistent bearish pressure at this level could invalidate the developing bullish formation in the short term. - 1.04646 – Current Resistance: Aligns with January’s high and the 23.6% Fibonacci retracement level.
A break above this zone could confirm a continuation of the new uptrend forming in recent sessions. - 1.05994 – Key Resistance: Coincides with the 100-period moving average and the 38.2% Fibonacci retracement level.
If the bullish momentum pushes price toward this level, it would confirm a much stronger uptrend in EUR/USD.
By Julian Pineda, CFA – Market Analyst
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.