Daily Forex Analysis – EUR/USD
The EUR/USD currency pair appears to be undergoing a consolidation phase, commencing from a value of 1.0451. The intraday sentiment currently leans towards neutrality. As we dive deeper into this, it is evident that the bearish outlook for the currency pair remains intact, provided the resistance level of 1.0620 isn’t breached. A potential decline could be witnessed if the 1.0481 level is broken, which may see the currency pair slide further, targeting the 1.0203 Fibonacci level.
This decline emanates from a high witnessed in 2022 at 1.1278. On the flip side, should the currency pair surpass the 1.0620 mark, it could signify a short-term reversal, tilting the scale in favor of a robust rebound.
Broadening our lens to view the larger scenario, the descent from the 1.1278 mid-term pinnacle could potentially be a mere correction to the remarkable ascent from the 2022 low of 0.9538. Nevertheless, the possibility of a full-fledged trend reversal is inching higher. Irrespective of the outcome, the current trajectory seems poised to target the 61.8% retracement point, pinned at 1.0203, from the range spanning 0.9538 to 1.1278. For the time being, any rebounding attempts may face challenges unless they surpass the 55 D EMA benchmark, which is stationed at 1.0763.
Analysis Summary
The EUR/USD pair hovers in a consolidation zone, with bearish undertones unless the 1.0620 resistance is broken. A larger perspective hints at a possible trend correction from the 2022 peak. The key determinant may be the 55 D EMA at 1.0763.
Key Points
- EUR/USD in consolidation, starting from 1.0451.
- Bearish trajectory persists unless 1.0620 resistance is overtaken.
- The larger picture hints at trend correction from 2022’s 1.1278 high.
