200-day MA: 1.0880 (bullish crossover occurred in late March – momentum has sustained since).
Next Resistance Levels:
R3: 1.1852
R4: 1.2060 These are realistic medium-term targets if 1.164 holds.
Macro/Geopolitical Context
Euro Strength Drivers:
ECB Hawkish Tone: The European Central Bank has remained cautious on premature rate cuts due to sticky core inflation, supporting the euro.
German PMI Beat: Recent economic prints from the eurozone—especially Germany—have shown stabilization, helping underpin euro demand.
Dollar Weakness Catalysts:
Middle East Tensions:
While oil typically boosts USD via risk aversion, recent de-escalations between Iran and Israel are calming safe-haven flows.
The USD is weakening on reduced war premium, and capital is rotating back to risk-friendly currencies like the EUR.
US Macro Softness:
Mixed job data and signs of disinflation are keeping pressure on the Fed to pivot, weakening the USD outlook.
Political uncertainty in the U.S. (Trump legal issues, election volatility) is creating a drag on dollar strength as well.
Probabilities Table
Scenario
Description
Probability
Comment
🟢 Bullish continuation
Price holds above 1.161 and pushes toward 1.185 / 1.206
60% +/-
Structural support intact, risk-on flows favor euro
🟡 Pullback to 1.150–1.155
Brief shakeout before reattempting higher
30% +/-
Would be healthy for trend, esp. if USD catches short bid
🔴 Breakdown below 1.150
Breaks trendline and loses structure
10% +/-
Would likely require surprise ECB dovishness or war reflare
Trade Setups
Trade Idea
Entry Zone
Stop-Loss
Target(s)
Setup Rationale
Trend Long
1.1620–1.1650
Below 1.1580
1.1850 / 1.2050
Breakout pullback entry with clean invalidation and clear risk-reward
Mean-Reversion Short
1.1845–1.1860
Above 1.1880
1.1680
Fade near R3 resistance if overstretched RSI emerges
No Trade Below
<1.1500
—
—
Avoid long setups if trendline is decisively broken
Final Word
Euro FX Futures remain in a structurally bullish phase, with macro and geopolitical factors aligning in its favor—namely a weakening USD on risk-normalization and a stable eurozone policy backdrop. As long as the price stays above 1.161 and trendline support holds, pullbacks remain buyable.
Trend channel identified on the 4-hourly chart. Analysis of the order block on the 15-minute chart. Trend Channel Analysis Looking at the 4-hourly chart, there is a strong bullish channel that we can take note of. Currently, the price of RTY is trading around the low of the channel, and it may be ideal to Read More…
Bearish target of $1,622 has been hit. Gold consolidating within a tight zone. Fundamentals playing a big role in the Gold price. Bears Target Hit In the October 28th article, we mentioned the potential for Gold to drop to the support zone at $1,622. As we suspected, the gold price has done just that and Read More…
Current Overview and Market Sentiment:The S&P 500 futures chart is showing signs of exhaustion after an impressive rally over the past two years. As we approach September 2024, the market is showing clear indications of bearish divergence, warning us of a possible trend reversal or significant correction in the coming weeks. Price Action: The S&P Read More…
