EUR/USD - Potential Bullish Reversal?

10月24日

EURUSD

💡 Looking at the EUR/USD pair on the daily chart (D1), several technical signals suggest a potential bullish reversal might be on the horizon. Here are the key points:

RSI Near Oversold Levels 📉: The RSI is sitting at 31.89, very close to the oversold threshold of 30. This indicates that the market could be oversold, with selling pressure potentially fading and a technical bounce on the way.

Uptrend Still Intact 📈: While prices have dropped recently, the pair remains above the ascending trendline that has been in place since 2023. This trendline is a critical support level, and as long as it holds, the overall bullish structure remains intact.

Below the 200 EMA 🔄: The price is currently trading below the 200-day EMA, signaling short-term weakness. However, in bullish markets, it’s common to see temporary corrections below key moving averages before resuming the upward trend.

Potential Bullish Reversal Scenario 🟢:
If the price hits the trendline and the RSI stays near oversold levels, we could see a bullish reaction, with a potential bounce to follow.
The target would then be a return towards the 200 EMA, and possibly a breakout to key resistance levels around 1.09-1.10.
A Fibonacci retracement could also potentially come into play, offering key levels such as 38.2%, 50%, and 61.8% to watch for resistance as the price recovers.

⚠️ Watch Out:
If the trendline is broken with strong momentum, this bullish scenario could be invalidated, and we may see further declines towards 1.06 or lower.


In summary, despite recent bearish pressure, technical conditions suggest we might be nearing a bullish reversal, provided the key support level holds. Fibonacci retracement levels could also offer further insight into potential resistance points during a recovery.