Detailed FX Market Outlook and Analysis

EUR/USD Daily Analysis 17-FEB-2023

EUR/USD Daily Analysis

At present, the intraday bias for EUR/USD is pointing downwards. The current drop from 1.1032 should aim for the 38.2% retracement level of the upward move from 0.9534 to 1.1032, which is at 1.0463. This level is expected to provide strong support and potentially trigger a rebound, at least on the first attempt. On the upside, if the price surpasses the minor resistance level of 1.0721, the intraday bias will become neutral initially. However, the risk will continue to be on the downside as long as the resistance level of 1.0803 holds.

In the bigger picture, the rally from the low of 0.9534 in 2022 represents a medium-term uptrend rather than a correction. Therefore, it is expected to rise further towards the 61.8% retracement level of the drop from the high of 1.2348 in 2021 to the low of 0.9534, which is at 1.1273. This will continue to be the favored scenario as long as the support level of 1.0482 holds.

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