EUR/USD Testing a Key Support Zone

EurUSD, Time frame: Daily, Tools: SMA35, Source: Trading view

By tracking the price movement of the euro against the US dollar, we find that the euro remains under pressure from the descending trendline, yet it is stabilizing near support levels around 1.1400. Over the past four weeks, EUR/USD has been moving up and down within a range between 1.1485 as the high and 1.1325 as the low. Therefore, and according to technical analysis, no significant price changes are expected unless the pair manages to break above the 1.1485 resistance, which represents:

1. The resistance of a descending trendline extending for approximately three months
2. The resistance of the 35-day moving average

On the other hand, levels near 1.1400 are considered key technical support, as they represent:

1. A horizontal support level visible on the chart, which has seen three previous rebounds
2. Support for a rising wedge pattern, where a break below this support would indicate a continuation of the downtrend

Today, markets are awaiting interest rate data in the eurozone, with expectations of stability at 2.40%. Accordingly, the European Central Bank president's outlook on future interest rates and the broader economy will have a clear impact on the movement of the euro.