EUR/USD Analysis
The intraday bias in EUR/USD currently maintains a neutral stance, with the consolidation phase continuing from the level of 1.1016. While the possibility of a deeper retreat exists, anticipation leans towards a further rally, provided the support at 1.0722 remains intact. A breakthrough of 1.1016 would signify a resumption of the overall ascent from the low of 1.0447, setting the stage for a retest of the 1.1274 high.
The price actions evolving from 1.1274 are interpreted as a corrective pattern within the larger context of the rise from 0.9534, recorded as the low in 2022. The ascent from 1.0447 is identified as the second leg of this pattern. Although the potential for a continued upward trajectory exists, it is expected to be capped at 1.1274, paving the way for the emergence of the third leg of the pattern. Conversely, a sustained breach of the 1.0722 support level would suggest the initiation of the third leg, targeting levels at 1.0447 and below.
Analysis Summary
In summary, the intraday neutrality in the EUR/USD pair persists amid consolidation, favoring a potential rally contingent on the resilience of the 1.0722 support. The broader perspective identifies the ongoing price actions as part of a corrective pattern, with the anticipation of a limited upside constrained by the 1.1274 mark, unless a sustained break of 1.0722 signals the onset of a new downward leg.
Key Points
- Intraday bias in EUR/USD remains neutral, with consolidation ongoing from 1.1016.
- Anticipation leans towards a further rally, conditional on the maintenance of support at 1.0722.
- The corrective pattern from 1.1274 suggests a limited upside, barring a sustained breach of 1.0722, which would mark the initiation of a new downward leg.
