Detailed FX Market Outlook and Analysis

EUR/USD Daily Analysis 24-MAY-2023


EUR/USD remains confined within a consolidation phase just above the temporary low of 1.0763, keeping the intraday bias neutral. It is crucial to note that a slight adjustment of 0.0004 has been applied to all the numbers for enhanced readability. Anticipating a deeper decline, it is imperative to monitor the resistance level at 1.0907, as sustained strength at this point could act as a barrier to further advances. The ongoing descent from 1.1098 is viewed as a corrective movement within the broader uptrend originating from 0.9538. Should the support at 1.0763 be breached, the next objective would be the 1.0519 cluster support, coinciding with the 38.2% retracement level of 0.9542 to 1.1102, specifically at 1.0502. Conversely, if a decisive breakthrough above 1.0907 materializes, a more robust rebound could occur, retesting the prior high at 1.1098.

Zooming out to a larger timeframe, the prevailing bullish momentum from 0.9534 is expected to persist as long as the support level at 1.0515 remains intact. A sustained breach of the significant 61.8% retracement level at 1.1277, measured from the decline initiated at 1.2348 and concluding at 0.9534, would serve as a confirmation for a potential reversal in the bullish trend, with the subsequent target set at the resistance level of 1.2348, representing the 2021 high.

EUR/USD Daily Analysis Summary

To summarize, this Daily Analysis provides a neutral intraday bias for EUR/USD, stressing the possibility of a deeper decline if the resistance at 1.0907 remains unbroken. However, it is crucial to recognize the overall bullish trend as long as the support level at 1.0515 remains unharmed. Traders should diligently monitor the price action, awaiting a definitive breach of either critical level to ascertain the subsequent directional movement within this currency pair. This comprehensive Daily Update offers valuable insights for intraday analysis, ensuring traders remain well-informed about the latest developments in the EUR/USD market.

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