Beginner’s Guide: Understanding Future Trends and Using Technical Indicators in the EUR/USD 1-Hour Chart

EUR/USD Technical Analysis (1-Hour Chart): Battle Near 1.14 and Future Outlook

Market Background and Current Price Trends

As of May 27, 2025, the EUR/USD (Euro/US Dollar) 1-hour chart is trading around the 1.1389 level. In recent days, price action has repeatedly tested an important resistance line near 1.14, with buying interest and selling pressure nearly balanced among market participants. Given the upcoming US dollar policy rate decisions and European economic data releases, the market appears cautious. Since the Euro and US Dollar are the world's major reserve currencies and react strongly to economic news, it is important to consider both technical and fundamental factors.

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Moving Average Analysis: Trend Confirmation by 50MA and 200MA and Its Implications

The blue 50-period moving average currently provides solid support to the price, indicating ongoing buying pressure in the medium term. Meanwhile, the red 200-period moving average lies below the price, showing that the long-term trend remains upward. Based on the relative position of the moving averages, as long as the price stays above the 50MA, the uptrend is expected to continue. Especially when the 50MA is above the 200MA, this forms a "golden cross," a bullish signal closely watched by many traders; however, currently, the price is contesting just below that point.

MACD and RSI Trends: Momentum Strength and Market Sentiment

The MACD shows the short-term line (yellow) approaching the signal line (red), signaling a slight weakening of the previous upward momentum. The histogram is also shrinking, so future direction will depend on the MACD line crossover status. The MACD (Moving Average Convergence Divergence) is a representative indicator for capturing trend reversals.

The RSI is hovering around 50, indicating neither overbought (above 70) nor oversold (below 30) conditions. This suggests the market is balanced, and future direction depends on which side gains momentum. The RSI (Relative Strength Index) is an important tool to gauge market overheating.

Volume Analysis: Trend Reliability and Entry Point Confirmation

Volume on the chart is an important indicator to assess trend reliability. Currently, there are no notable surges, but if support near the 50MA is maintained, a strong upward move accompanied by volume increase can be expected. Traders should pay attention to whether volume confirms a breakout. Volume serves as supporting evidence for price movements.

Detailed Support and Resistance Levels

Summary: Key Points to Watch Strategically and Future Outlook

The EUR/USD’s upward momentum has temporarily slowed as it approaches the 1.14 resistance line. Careful monitoring of momentum indicators like the MACD and RSI is advised, and as long as support at the 50MA holds, the price is likely to test higher levels again. Conversely, if this support breaks, a short-term correction phase may occur, with the 200MA near 1.130 becoming the next important defense level.

Short-term traders might consider buying on dips near the 1.135–1.130 support zone, while medium- to long-term investors should ideally wait for a clear breakout above 1.14. A flexible strategy considering market volatility and fundamental changes is essential.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Trading is done at your own risk.

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