EUR/USD: technical analysis and trading recommendations_03/02/2022


After yesterday's sharp drop, EUR/USD continues to decline today, developing a downward trend towards the lower boundary of the descending channel on the weekly chart and the 1.0900 mark.

At the time of publication of this article, EUR/USD is traded near the 1.1100 mark, in the zone of almost 2-year lows, below the key resistance levels 1.1575 (EMA200 on the weekly chart), 1.1525 (EMA200 on the daily chart).

OsMA and Stochastic technical indicators on 4-hour, daily, weekly charts also recommend short positions.

The targets of further decline are local support levels 1.1000, 1.0900, 1.0700.

In an alternative scenario, the first signal for purchases may be a breakdown of the local resistance level 1.1135, and the confirmation signal - a breakdown of the important short-term resistance level 1.1235 (EMA200 on the 1-hour chart) with the aim of corrective growth to the resistance level 1.1305 (EMA200 on the 4-hour chart, EMA50 on the daily chart).

However, in the current situation, against the background of fundamental data, the situation in Ukraine and in our main scenario, short positions remain preferable.

Only a breakdown of the long-term resistance level  1.1575 (EMA200 on the weekly chart) can return EUR/USD into the zone of the long-term bull market with the prospect of growth to the resistance levels 1.1780 (Fibonacci 38.2% of the upward correction in the wave of decline of the pair from the mark of 1.3870, which began in May 2014, to 1.0500), 1.2060 (EMA200 on the monthly chart).

Support levels: 1.1050, 1.1000, 1.0900, 1.0700

Resistance levels: 1.1135, 1.1235, 1.1305, 1.1400, 1.1470, 1.1525, 1.1575

Trading Recommendations

Sell by-market, Sell Stop 1.1150. Stop-Loss 1.1140. Take-Profit 1.1000, 1.0900, 1.0700

Buy Stop 1.1140. Stop-Loss 1.1150. Take-Profit 1.1200, 1.1235, 1.1305, 1.1400, 1.1470, 1.1525, 1.1575