Chart of the day

Where do we stand fundamentally?

Analysts have been cautiously scrutinizing the EUR/USD pair. The pair has shown signs of bearish pressure, particularly after failing to maintain gains above the 1.0400 level. There's anticipation for potential parity in 2025 as the economic gap between the US and the Eurozone widens, influenced by monetary policy differences between the ECB and the Federal Reserve. The EUR/USD has been described as maintaining a neutral bias, with any recovery expected to be limited while certain resistance levels hold.

EURUSD is breaking below a strong resistance of 1.0490. My KNOWPO trading system indicates a good low-risk short trade here, as I expect a reversal downside to gain traction due to this breakout. The medium-term target should be 1.

A break above 1.0700 will invalidate the downside reversal and lead to a reversal higher. This downside breakout is opening the downside cycle.

_{You can take a short trade entry with a stop loss above 1.0600 to target 1.0200.}