EUR/USD briefly surpassed 1.1400 but has since retreated to around 1.1390, indicating a pause in the uptrend. Recent consecutive bearish candles and declining volume suggest a potential short-term pullback. Technical indicators such as moving averages, ADX, and DMI show signs of an overheated uptrend, with risks of profit-taking and a possible reversal. A break below 1.1380 could lead to further decline towards the 1.1350 area.
The chart indicates a potential "golden cross" where the 50-hour moving average (blue line) may cross above the 200-hour moving average (red line), signaling a possible shift from a downtrend to an uptrend. However, recent price action near the 50MA shows weak rebounds, necessitating attention to whether this average can provide support.
ADX (yellow line) is currently around 0.15, indicating an early trend stage. In DMI, +DI (green line) is above −DI (red line), showing buyer dominance. If ADX surpasses 0.20, it may confirm an uptrend, but caution is needed as +DI may be peaking.
Volume increased during the early morning rise on April 29 but has since decreased, indicating weakening buying momentum. A pullback in the 1.1380–1.1370 area could present a shorting opportunity.
※Image Source: cTrader Platform
Bullish Scenario (Continued Uptrend)
Entry: Long after confirming a breakout above 1.1400
Target: 1.1430–1.1450
Stop Loss: Below 1.1370
Bearish Scenario (Pullback Opportunity)
Entry: Short after confirming a break below 1.1370
Target: 1.1340–1.1320
Stop Loss: Above 1.1405
EUR/USD may be transitioning into an uptrend in the short term, but caution is warranted due to signs of overheating and decreasing volume. Monitor the 1.1380 support area and exercise prudent position management.
This article is for informational purposes only and does not constitute investment advice. Trading involves risk and should be conducted at your own discretion. For more information, please visit the FIXIO blog.
This article is intended for informational purposes only and does not constitute financial or investment advice. The analyses and strategies mentioned are based on past data and current market conditions, and may be subject to change in the future. When making investment decisions, always conduct your own research and consult a professional if necessary.
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