Happy Friday, dear traders. If you are looking for forex trading signals, you are in the right place. Today, we have come up with a technical analysis of the EURUSD market. Let’s dive into the analysis without further delay.

EURUSD Technical Analysis and Trading Signal for the Last trading session of this week:

The currency pair EURUSD is currently forming a double-top pattern, indicating a potential bearish reversal. This formation often signals an upcoming change in trend. The pair is now targeting a retest of the 1.1000 support level. Notably, this level aligns with the 38.2% Fibonacci retracement. As such, this support zone is crucial for traders to monitor. It will likely determine the next directional move for EURUSD. Keeping an eye on this level is essential for making informed trading decisions.

The Stochastic oscillator indicates oversold conditions. The %R oscillator also shows similar signs. Both oscillators suggest recent bearish momentum may be fading. This weakening momentum could lead to a bullish rebound; therefore, traders should monitor these indicators closely. Moreover, a potential reversal might be on the horizon. However, caution is advised, as market conditions can change rapidly. Thus, staying informed will help you make better trading decisions.
This creates two possible scenarios that traders need to consider based on price action near the 1.1000 support level.

🔍 Scenario 1: Bullish Rebound (Buy)

If EURUSD respects the 1.1000 support, a rebound may occur. Consequently, this rebound could lead to a price increase. The immediate target for this movement would be the 1.1200 resistance level. This level presents good upside potential for long positions. Additionally, oversold conditions on the Stochastic oscillator further support this scenario. Therefore, traders should watch for signs of a reversal at this support level. Monitoring these indicators will help inform trading decisions. The %R oscillator also signals the potential for a rebound. Both indicators suggest that selling pressure might be decreasing. Traders should watch for signs of a reversal at this support level.

📉 Scenario 2: Break Below Support (Sell)

If the price breaks below the 1.1000 support and more importantly, breaches the 38.2 Fibonacci level, the bearish outlook would intensify. In this case, EURUSD could extend its decline, with the next target being the 1.0870 level. This would indicate a continuation of the downtrend, and traders may look to sell on a confirmed break of these critical levels.

🔑 Key Technical Levels to Watch:

• Support: 1.1000 (and 38.2 Fibonacci retracement)
• Resistance: 1.1200 (bullish target)
• Bearish Target: 1.0870 (if support breaks)

📈 What’s Your Call Today? Will EURUSD bounce back from 1.1000 or break lower towards 1.0870? The market could go either way depending on how it reacts to this critical level.

💬 Share Your Thoughts: Did you like this analysis? What’s your trading strategy for EUR/USD? Share your thoughts in the comments below!