Detailed FX Market Outlook and Analysis

EUR/USD Daily Analysis 21-FEB-2023

EUR/USD Daily Analysis

The EUR/USD currency pair is currently consolidating above the temporary low of 1.0610, and the intraday bias is neutral. However, there is a downward risk if the resistance level of 1.0803 remains intact. If the currency pair breaks below the 1.0610 level, it will resume a corrective fall from 1.1032, with a retracement of 38.2% from 0.9534 to 1.1032 at 1.0463. It is expected that strong support will be seen around this level, leading to a rebound, at least on the first attempt.

In terms of the bigger picture, the rally from the low of 0.9534 in 2022 is a medium-term uptrend, rather than a correction. There is a possibility of further rise to the 61.8% retracement of 1.2348 (2021 high) to 0.9534 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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