EUR/USD regained its traction after declining toward 1.0950 earlier in the day and climbed above 1.1000. The improving market mood in the early European session seems to be weighing on the dollar and helping the pair push higher. In the absence of high-tier data releases, markets will focus on central bank speak.

Weekly timeframe is usually used for analysis and eventual prediction of the move. However, the weekly timeframe can also be used for trading as any other time frame. The difference is that trades will take a longer time to develop. I have noticed a chance for a good r:r trade as long as the price is kept avoe 1.0900-1.1000 zone. 88.6 bounce could be targeting 1.1325, 1.1413 and 1.1610. Everything is shown in the chart as the price progresses and my account is already 30 % in profits due to running trades.

EUR/USD is trading below the 100-period SMA on the four-hour chart and the Relative Strength Index (RSI) indicator continues to edge lower while holding above 30, suggesting that the pair has more room on the downside before turning oversold.

1.0940 (Fibonacci 23.6% retracement of the latest downtrend) aligns as the next bearish target. In case this level turns into resistance, additional losses toward 1.0900 (psychological level) and 1.0840 (static level) could be witnessed.

On the upside, strong resistance seems to have formed at 1.1000 (psychological level, Fibonacci 38.2% retracement, 50-period SMA) ahead of 1.1020 (100-period SMA) and 1.1040 (Fibonacci 50% retracement).

Meanwhile, the cautious market mood amid a lack of progress in Russia-Ukraine talks is putting additional weight on the shared currency's shoulders.

Hawks To Push EURUSD Higher

Mar 22 2022