EUR/USD Analysis
The current intraday bias for EUR/USD maintains an upward trajectory. The ongoing rally, stemming from the low of 1.0447, is unfolding to revisit the high of 1.1274. Anticipate robust resistance at this level, potentially constraining further upward movement, particularly on the initial attempt. Conversely, a dip below the minor support at 1.1027 would neutralize the intraday bias initially. However, the overall favorability towards a continued rally persists, contingent upon the resilience of the support at 1.0722 in the event of a retreat.
The price actions since the peak of 1.1274 are interpreted as a corrective pattern counterbalancing the ascent from the 2022 low of 0.9534. The ongoing rise from 1.0447 is identified as the second leg within this corrective sequence. Although the potential for a further rally is acknowledged, caution is warranted, as the upside is expected to be capped at 1.1274 to facilitate the commencement of the third leg in the corrective pattern. Conversely, a sustained breach of the 1.0722 support would indicate the initiation of the third leg, targeting levels below 1.0447.
Analysis Summary
EUR/USD maintains an upward bias, targeting a retest of 1.1274. However, robust resistance is expected, limiting the immediate upside. The broader perspective suggests a corrective pattern, with the ongoing rise viewed as the second leg. Caution prevails, with a focus on the 1.0722 support.
Key Points
- Intraday bias for EUR/USD favors upside movement, targeting a retest of 1.1274.
- The broader picture indicates a corrective pattern from 1.1274, with the ongoing rise as the second leg.
- Caution is warranted as resistance at 1.1274 may cap the current rally; focus on the critical support at 1.0722.
