Daily Forex Analysis – EUR/USD
The EUR/USD trajectory remains steady, with the ongoing consolidation stemming from 1.0451. Present intraday sentiment is neutral. Should there be a robust breach of the 1.0620 resistance, it would signify a short-term bottoming, prompting a potential upward momentum for a more substantial recovery. However, if the 1.0620 resistance continues to act as a barrier, the short-term bearish sentiment will persist. A decline past 1.0451 would be indicative of an extended drop originating from 1.1278, targeting the 1.0203 Fibonacci level.
Broadening our view, the decline that commenced from the 1.1278 mid-term peak might simply represent a correction to the significant uptick from 0.9538, observed as the 2022 nadir. However, there’s an increasing probability of a complete trend inversion. Regardless of the scenario, the ongoing decline is predicted to aim for the 61.8% retracement, which is calculated between 0.9538 and 1.1278, pinpointing the 1.0203 level next. In the event of a potential recovery, the downside risk will continue to overshadow unless the pair breaches the current 55 D EMA threshold, which is situated at 1.0729.
Analysis Summary
EUR/USD’s current trajectory is marked by ongoing consolidation, with a neutral intraday sentiment. A decisive movement past the 1.0620 resistance or 1.0451 support will dictate the near-term trend. A broader outlook suggests a potential decline towards 1.0203.
Key Levels
- EUR/USD’s consolidation revolves around 1.0451, with a pivotal resistance at 1.0620.
- A breach of 1.0620 can signify short-term bottoming, while failure indicates sustained bearishness.
- In a broader context, the pair might target the 1.0203 level, contingent on 55 D EMA at 1.0729.
