Euro Futures Analysis for Today

TradeCompass for Euro Futures (6E) – January 22, 2025

At the time of this analysis, Euro Futures (6E) are trading at 1.04385, placing the market near the key bearish threshold of 1.04365. Below is a detailed Euro Futures analysis and price prediction for both bullish and bearish scenarios.

Bearish Bias (Below 1.04365)

If the price sustains below 1.04365, bearish momentum is expected, targeting the following levels:

1. 1.04285 – A quick target close to the POC of two days ago and yesterday’s VAH.
2. 1.0412 – Positioned just above yesterday’s VWAP.
3. 1.0391 – Just above the VWAP from two days ago, marking another key support.
4. 1.0380 – The POC of yesterday or slightly above it, providing significant support.
5. 1.0372 – A deeper target, suggesting extended bearish pressure.
6. 1.0367 – Aligns with additional bearish continuation.
7. 1.0334 – A possible runner target, just above the value area low (VAL) from January 19, 2025, reflecting strong bearish potential.

Bullish Bias (Above 1.0466)

Should the price recover and hold above 1.0466, bullish momentum may develop, targeting:

1. 1.0490 – A near-term bullish target signaling further strength.
2. 1.0515 – Just below the third standard deviation of the VWAP from two days ago, indicating extended bullish potential.

Key Insights for Euro Futures Traders

• VWAP and Standard Deviations: These levels are critical for understanding momentum and overextension in Euro Futures price movements. The bullish threshold above the second standard deviation of yesterday’s VWAP (1.0466) signals strength, while bearish pressure below the first upper standard deviation (1.04365) could lead to further downside.
• POC and VAH/VAL: Key levels like yesterday’s POC (1.0380) and two days ago’s VAH (1.04285) offer strong reference points for intraday profit-taking or reversals.
• Psychological Ranges: The proximity of targets to round numbers like 1.0400 and 1.0500 may influence price action and should be carefully monitored.

Euro Futures Price Prediction Summary

• Bearish Bias Below 1.04365: Targets include 1.04285, 1.0412, 1.0391, 1.0380, 1.0372, 1.0367, and potentially 1.0334.
• Bullish Bias Above 1.0466: Targets include 1.0490 and 1.0515.

This Euro Futures analysis provides a clear guide for navigating today’s price action. Remain flexible and adapt to price behavior near these levels, managing risk and securing profits as the market evolves.

Trade at your own risk. Adjust your strategy according to the developing conditions in Euro Futures (6E).

This article was written by Itai Levitan at www.forexlive.com.