Detailed FX Market Outlook and Analysis

EUR/USD Daily Analysis 31-JAN-2023

EUR/USD Daily Analysis

EUR/USD recovers mildly today but stays in the range below 1.0928. Intraday bias remains neutral for the moment. With 1.0765 support intact, further rally remains in favor. On the upside, the break of 1.0928 will resume a larger rise to a 61.8% projection of 0.9630 to 1.0733 from 1.0482 at 1.1164 next. On the downside, though, the break of 1.0765 support should confirm short-term topping and turn bias back to the downside for 55 days EMA (now at 1.0601).

In the bigger picture, current development suggests that the rally from the 0.9534 low (2022 low) is a medium-term up trend rather than a correction. Further rise is in favor of a 61.8% retracement of 1.2348 (2021 high) to 0.9534 at 1.1273 next. This will remain the favored case as long as 1.0482 support holds.


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