EUR/USD Daily Analysis 01-June-2023
In our Daily Analysis of the EUR/USD pair, we discern an intraday bias veering towards the downside. The current dip is regarded as a recalibration in the overarching uptrend that commenced from 0.9537. As the pair navigates its course, a deeper descent seems plausible, possibly directing us to the 1.0518 cluster support. This marks a significant 38.2% retracement of the rally from 0.9537 to 1.1097, with the retracement converging at 1.0501.
However, should the currency pair break through the 1.0748 resistance barrier, it may signify short-term bottoming. This would likely alter the market bias, ushering in a stronger recovery. The rebound’s potential trajectory is set towards the 55 D EMA, currently pegged at 1.0839.
Casting a wider net in our Daily Update to take stock of the broader picture, it seems the upward swing from the 2022 low of 0.9537 could continue its journey, as long as the 1.0518 support holds firm. This trajectory is emblematic of the pair’s resilience, especially amidst testing market conditions. The scenario transforms when considering a sustained break above the 61.8% retracement level at 1.1276. This level, calculated from the drop from the 2021 zenith of 1.2351 to the 2022 nadir of 0.9537, strengthens the probability of a bullish trend reversal. Consequently, the next objective on this course would be the resistance level at 1.2351, mirroring the 2021 peak.
EUR/USD Daily Analysis Summary
To Summarize, the daily Analysis suggests a downside bias for EUR/USD, with a potential drop towards 1.0518. However, if the pair breaches the 1.0748 resistance, it may indicate short-term bottoming and a rebound. Long-term, the uptrend from 0.9537 could continue, potentially reversing the bearish trend if the pair surpasses the 1.1276 retracement level.
- EUR/USD exhibits a downside intraday bias, potentially dropping to 1.0518
- A breach of 1.0748 resistance could indicate a potential rebound
- Long-term uptrend may reverse bullishly if the pair surpasses 1.1276