EUR/USD Price Analysis – April 13, 2023
Daily Price Outlook
Today, the EUR/USD currency pair is trading with a bullish bias around the 1.0985 level. However, the recent sharp bullish trend in the EUR/USD currency pair has led it into the overbought zone, and it is facing strong resistance around the 1.1000 level.
The formation of bearish engulfing and doji candles around the 1.1000 level has increased the likelihood of a downward trend continuation or bearish correction in the currency pair.
Simultaneously, leading technical indicators such as RSI and MACD have entered or are approaching the overbought zone, with the RSI value surpassing 70 and MACD forming strong green histograms.
Given this, bears may enter the market to capitalize on the oversold EUR/USD currency pair. We have applied a Fibonacci tool, which suggests that the EUR/USD currency pair may retrace to the 23.6% retracement level at 1.0960.
Continuing a bearish trend or correction could extend the downward movement to the 38.2% Fibonacci retracement level, found around 1.0936.
So, today's idea is to look for a sell position below the 1.1000 level, with a stop loss around the 1.1020 level and targeting support around the 1.0960 level or 1.0936 level.
EUR/USD Trade Idea
Entry Price – Sell Below 1.1000
Stop Loss – 1.1025
Take Profit – 1.0935
Risk to Reward – 1 : 2.5
Profit & Loss Per Standard Lot = +$640/ -$250
Profit & Loss Per Micro Lot = +$64/ -$25
Related:
* EUR/GBP Price Analysis – April 13 2023
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