Detailed FX Market Outlook and Analysis

EUR/USD Daily Analysis 02-MAY-2023

EUR/USD Daily Analysis

The intraday bias for EUR/USD remains neutral for now as the currency pair continues its sideways consolidation. A further rally is expected as long as the support level of 1.0908 holds. A break of 1.1094 will resume the larger uptrend towards the 1.1273 Fibonacci level. A break of this level will target the 61.8% projection of the move from 0.9534 to 1.1032 from 1.0515 at 1.1441. However, considering the bearish divergence condition in the 4-hour MACD, a break of the 1.0908 support level will indicate a short-term top and turn the bias back to the downside.

Looking at the bigger picture, the rise from the 2022 low of 0.9534 is currently in progress towards the 61.8% retracement level of 1.2348 (2021 high) to 0.9534 at 1.1273. A sustained break of this level will solidify the case for a bullish trend reversal and target the 1.2348 resistance level next (2021 high). This will continue to be the favored case as long as the 1.0515 support level holds, even in the case of a deeper pullback.

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