Daily Forex Analysis – EUR/USD
The EUR/USD currency pairing is witnessing a rebound, initiating from 1.0451 and gaining momentum with the breach of 1.0620, signifying the establishment of a short-term foundation. As the intraday sentiment shifts, the pair seems poised to test the 1.0768 resistance, a significant confluence zone corresponding to the 38.2% retracement of the move from 1.1278 to 1.0451. However, should there be a downturn breaking the 1.0522 support, revisiting the recent low at 1.0451 could be on the horizon.
Looking at a more expansive timeframe, the descent from the medium-term pinnacle of 1.1278 might be perceived as a corrective phase to the surge that emerged from the 0.9538 level in 2022. The possibility of a total shift in trend is increasingly palpable. Regardless of the overarching trend’s nature, the immediate direction appears to target the 61.8% retracement of the ascent from 0.9538 to 1.1278, pinpointed at 1.0203. The 55-day Exponential Moving Average (EMA), standing at 1.0723, plays a crucial role. Any rally would face resistance here, emphasizing the prevailing downside risk.
Analysis Summary
The EUR/USD pair’s bounce from 1.0451 hints at a short-term bottom, targeting the 1.0768 resistance. However, the broader outlook suggests potential downside risks, especially if the 55-day EMA at 1.0723 remains unbroken.
Key Points
- Momentum builds for EUR/USD after breaching 1.0620.
- 1.0768 serves as a significant resistance derived from historical retracement levels.
- The 55-day EMA at 1.0723 will be a critical determinant of the pair’s trajectory.
