EUR/USD: technical analysis and trading recommendations_02/25/2022

 
 
 
 
 
 
 

After yesterday's precipitous fall, today EUR/USD continues to be under pressure, developing a downward trend. At the time of publication of this article, EUR/USD is traded near 1.1170, in the zone of almost 2-year lows, below the key resistance levels 1.1575 (EMA200 on the weekly chart), 1.1535 (EMA200 on the daily chart). The targets for further decline are the local support levels 1.1000, 1.0900, between which the lower line of the descending channel on the weekly chart passes.

In an alternative scenario, the first signal for buying may be a breakdown of the local resistance level 1.1230, and a confirming one – a breakdown of the important short-term resistance level 1.1303 (EMA200 on the 1-hour chart).

However, in the current situation and in the area below the resistance level 1.1335 (EMA200 on the 4-hour chart, EMA50 on the daily chart), short positions remain preferable.

Only the growth into the zone above the key resistance level 1.1535 (EMA200 on the daily chart) and the breakdown of the long-term resistance level 1.1575 (EMA200 on the weekly chart) can return EUR/USD to the zone of the long-term bull market with the prospect of growth to the resistance levels 1.1780 (Fibonacci level 38.2% of the upward correction in the wave of the pair's decline from the level 1.3870, which began in May 2014, to the level 1.0500), 1.2075 (EMA200 on the monthly chart). Further prospects should be assessed after reaching these marks.

In our main scenario, EUR/USD short positions are preferred.

Support levels: 1.1165, 1.1160, 1.1140, 1.1100, 1.1000, 1.0900

Resistance levels: 1.1230, 1.1303, 1.1335, 1.1475, 1.1535, 1.1575

Trading Recommendations

EUR/USD: Sell Stop 1.1160. Stop Loss 1.1230. Take-Profit 1.1140, 1.1100, 1.1000, 1.0900, 1.0730

Buy Stop 1.1230. Stop Loss 1.1160. Take-Profit 1.1303, 1.1335, 1.1475, 1.1535, 1.1575