EUR/USD Forecast 28/07: Traders Watch Trendline (Chart)

(MENAFN- Daily Forex)

• During the trading session on Friday, we have seen the euro drift a little bit lower during the trading session, forming what could be thought of as a potential“double top.”
• That being said, I also have a trendline on the chart that I'm watching, so I'm not necessarily interested in shorting until we break not only that, but a few other levels underneath.

On the upside, the 1.18 level is an area that could be the potential“double top”, but if we break above there then it obviously negates the entire negativity of the chart, and we probably go looking to the 1.20 level. We are in an uptrend, so one would assume that's the most likely path of least resistance is to the upside, but we will have to wait and see.

Top Forex Brokers1 Get Started 74% of retail CFD accounts lose money Federal Reserve and European Central Bank

One thing that you need to keep in mind for this market is that both the Federal Reserve and the European Central Bank are in the spotlight. After all, the ECB this week suggested that they might be in a bit of a holding pattern, and the Federal Reserve is unlikely to cut rates next week. In other words, this is a situation where both banks are just essentially stuck with what they are going to be doing. This does lead to a sideways market from everything I see, but I do have a couple of levels that I'll be watching to determine where and in which direction I will be trading next.

EURUSD Chart by TradingView

I see a big uptrend line that we are a few days away from challenging, so all be watching that, and then we have an area that I think is a“zone of support” between the 1.16 level and the 1.15 level. It's also worth noting that the 50 Day EMA sits in that same region as well, so it should hold up quite nicely as support. If it does not, I will start aggressively shorting this pair. If we break above the 1.18 level, then it opens up a move to the 1.20 level like as stated previously.

Ready to trade our daily Forex analysis ? We've made a list of the best forex demo accounts worth trading with.

MENAFN28072025000131011023ID1109852932