Detailed FX Market Outlook and Analysis

EUR/USD Daily Analysis 10-April-2023

EUR/USD Daily Analysis

The EURUSD currency pair has seen a decrease in momentum after reaching the resistance level of 1.0970 and subsequently dropping below the psychologically significant mark of 1.0900. Over the medium-term, the pair is consolidating within a defined range, with a lower boundary of the 1.0530 barrier and an upper boundary of 1.0970. Nevertheless, the pair remains bullish in the longer-term as it continues to hold above the uptrend line that was drawn on September 28.

A technical analysis of the pair shows that the MACD oscillator is maintaining its position near the trigger line within the positive region, while the RSI is moving sideways and staying above the neutral threshold of 50.

If the EURUSD pair continues its upward movement, it is expected to encounter resistance at the 1.0970 barrier and the crucial 1.1030 resistance level, which was previously recorded on February 2. Breaking above this key area would create a path towards the 1.1180 level, which was previously the peak in March 2022.

However, if prices turn lower, the 20-day simple moving average (SMA) at 1.0808 would be the nearest support that could prevent steeper declines. A potentially more crucial support level is the 1.0760 inside swing high, followed by the flat 50-day SMA at 1.0720, which stands close to the long-term ascending trend line. If breached, the focus would shift to the downside, with prices slipping beneath the 23.6% Fibonacci retracement level of the up leg from 0.9535 to 1.1030 at 1.0680, before eventually falling towards the 200-day exponential moving average (EMA) at 1.0590, which would keep prices in the neutral zone.

In conclusion, for the EURUSD pair to have a clearly bullish outlook, it would need to sustain a climb above the 1.1030 resistance level.

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