Significant support- 1.0340.
EUR/USD has shown a minor pullback once gained after forming a bottom near 1.03400. It hit a low of 1.03459 and is currently trading around 1.03863.
The US dollar has gained strength today, January 2, 2025, primarily driven by risk aversion among investors and expectations surrounding the incoming Trump administration.
Technical Analysis and Market Outlook for EUR/USD
The pair remains below both short-term (34 and 55-EMA) and long-term (200-EMA) moving averages on the hourly chart. Near-term resistance is at 1.0380; a breakout above this level could push the pair towards targets at 1.0435/1.04635, 1.0500, 1.0550, and 1.0600. Major bullish momentum is expected only if prices surpass 1.0660, which would open the door to levels of 1.0700, 1.0760, and 1.0800. On the downside, immediate support is at 1.0340; a drop below this could lead to further declines to 1.0300 and 1.0240.
Trading Strategy: sell below 1.03400
Commodity Channel Index (CCI)- Bearish
Average Directional Movement Index (ADX) - Bearish
It is good to sell below 1.03400 with a stop-loss at 1.0380 and a target price of 1.02400 for potential gains.
