EUR/USD Daily Analysis - July 2, 2024: Bearish Trends and Key Resistance Levels

Fundamental Overview

The Eurozone's Core CPI Flash Estimate for July 2024 has reported an annual increase of 2.9%, slightly surpassing the forecast of 2.8% and matching the previous month's rate. This measure excludes volatile items like food, energy, alcohol, and tobacco, serving as a critical indicator of underlying inflation trends in the Eurozone. The steady inflation rate supports the euro, suggesting moderate inflationary pressure.

Technical Analysis

• Daily Timeframe: The EUR/USD pair remains in a bearish trend below the resistance level at 1.0850.
• H4 Timeframe: The pair exhibits a bearish trend, with price movement within a range, indicating potential consolidation before further directional moves.
• H1 Timeframe: A shift from bullish to bearish sentiment is noted at the price level of 1.0732, highlighting a renewed bearish outlook and potential for short positions.

Key Levels

• 1.0773: Identified as a double top, this critical resistance level is expected to see selling pressure.
• 1.0745: Marked as the Quasimodo Level (QML), another significant level for potential short positions.

Given the prevailing bearish trend across daily, H4, and H1 timeframes, it's advisable to focus on selling opportunities in lower timeframes while considering these higher timeframe levels.

Chart Analysis

In summary, maintaining a bearish outlook and looking for short positions at the identified levels of 1.0773 and 1.0745 could yield favourable trading opportunities.

This analysis provides a comprehensive outlook on EUR/USD,. It's essential to perform your own analysis and practice on a demo account before engaging in live trading. The market can be unpredictable, and proper preparation is crucial for success.

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