At the beginning of the new week, the EURUSD pair continued its upward correction, but today's session looks a bit different. Despite the initial increases, the EURUSD pair is currently trading below the flatline. Traders wonder, whether the upward correction is coming to an end, or is it just a temporary pullback.
The answer to this question is difficult given tomorrow's ECB meeting regarding interest rates, which should increase volatility in the markets. Let's take a look at the technical situation on the chart ahead of this event.
Taking a look at the D1 interval, the pair has been moving in a downtrend for a long time. After an unsuccessful attempt to break below the parity level, an upward correction was generated. However, the market bulls weakened during today's session, which means that a resumption of the main downward trend cannot be ruled out. On the other hand, if bulls manage to uphold recent momentum, the zone at 1.0360 should be treated as nearest resistance.
EURUSD interval D1. Source: xStation5
In turn, looking at the lower H4 interval, one can notice that the pair breached the upper limit of the 1:1 structure, however failed to uphold momentum and pulled back quickly. According to the Overbalance methodology, this may herald resumption of the main downtrend. This scenario is valid until the price remains below the 1.0215 level. In this case, another attack on the psychological barrier of 1.0000 could take place.
EURUSD interval H4. Source: xStation5
🔴 Three markets to watch next week: EURUSD, CH50cash, OIL (08.05.2026)
BREAKING: US Labor Market Stronger Than Expected, While Wage Pressure Eases. EURUSD gains!🚨
CoreWeave results: Expansion without profit and without direction
📈 EURUSD up 0.4% before the NFP
The material on this page does not constitute as financial advice and does not take into account your level of understanding, investment objectives, financial situation or any other particular needs.
All the information provided, including opinions, market research, mathematical results and technical analyses published on the website or transmitted to you by other means is provided for information purposes only and should in no event be interpreted as an offer of, or solicitation for, a transaction in any financial instrument, nor should the information provided be construed as advice of legal or fiscal nature.
Any investment decisions you make shall be based exclusively on your level of understanding, investment objectives, financial situation or any other particular needs. Any decision to act on information published on the website or transmitted to you by other means is entirely at your own risk. You are solely responsible for such decisions.
If you are in doubt or are not sure that you understand a particular product, instrument, service, or transaction, you should seek professional or legal advice before trading.
Investing in OTC Derivatives carries a high degree of risk, as they are leveraged based products and often small movements in the market could lead to much larger movements in the value of your investment and this could work against you or for you. Please ensure that you fully understand the risks involved, taking into account your investments objectives and level of experience, before trading, and if necessary, seek independent advice.
