EURUSD Technical Analysis: Testing 1.1683 Support
Market Overview
The EURUSD pair continues its downtrend as we enter Friday’s session, with yesterday’s close at 1.16830 signaling sustained selling pressure against the dollar. The euro has lost approximately 60 pips since the week’s open at 1.17040, establishing a bearish momentum that traders should monitor closely.
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Current Price Action: Yesterday’s candle closed near the lows at 1.16830, well below the opening at 1.17040. This bearish engulfing pattern suggests strong dollar demand and potential further downside. The pair has now broken below the 1.1700 psychological level, a significant technical barrier.
Key Support Levels:
- 1.1683 – Yesterday’s low; immediate support
- 1.1668 – Intraweek low from April 23rd
- 1.1618 – Potential deeper support if weakness continues
- 1.1700 – Broken resistance now acting as resistance
Resistance Levels:
- 1.1716 – Recent high from April 23rd
- 1.1750 – Session open level
- 1.1787 – Intermediate resistance from April 20th-21st
Technical Observations: The five-day downtrend shows consistent lower highs and lower lows, indicating bearish control. The range-bound volatility (approximately 48 pips daily) suggests traders are positioning ahead of end-of-week economic data. Watch for a potential test of 1.1668 if selling pressure intensifies.
Currency Pair Movements
EURUSD: Bearish bias with support at 1.1683
GBPUSD & USDJPY: While specific data wasn’t provided, monitor these pairs for correlated dollar strength. A broad USD rally would reinforce EURUSD weakness.
Economic Events to Watch
- US Core PCE Data (April 25th) – May influence Fed rate expectations and dollar demand
- Eurozone Confidence Indicators – Monitor for shifts in European economic sentiment
- US Economic Calendar – End-of-week releases could trigger volatility
Trading Outlook
Bearish Bias (Short Trades): Consider selling opportunities near 1.1716-1.1750 with targets toward 1.1668. Risk management is essential—place stops above 1.1787 to protect against unexpected reversals.
Bullish Reversal (Long Trades): Only consider longs if price stabilizes above 1.1700 with a confirmed bounce pattern. A break above 1.1750 would be required to signal trend reversal.
Intraday Strategy: Scalpers should focus on the 1.1683-1.1716 range, using smaller position sizes given end-of-week volatility. Watch for breakouts with volume confirmation.
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This analysis is for educational purposes only and does not constitute financial advice. Trading forex carries significant risk. Past performance is not indicative of future results.