Daily Forex Analysis – EUR/USD
For now, the intraday sentiment concerning the EUR/USD pair lingers in a neutral state. The currency pair remains under a bearish cloud as long as the 1.0643 resistance persists. A solid plunge below 1.0451 would signal the continuation of the descent that started from 1.1278, aiming for the 1.0203 Fibonacci retracement level. However, if the resistance at 1.0643 is broken, it might pave the way for a rebound originating from 1.0451, with an immediate target being the 55-day Exponential Moving Average, currently situated at 1.0698.
Taking a more expansive view, the drop from the medium-term peak of 1.1278 might just be an adjustment to the upward movement that was ignited at the 2022 low of 0.9538. Nevertheless, the possibility of a full trend inversion is escalating. Whether this is a mere correction or a larger trend shift, the current trajectory points towards the 61.8% retracement level of the rise from 0.9538 to 1.1278, which is at 1.0203. With the 55-day EMA at 1.0698 acting as a potential barrier, the downside appears to have a higher probability, especially in a rebound scenario.
Analysis Summary
EUR/USD’s intraday stance is neutral, with a bearish undertone due to the 1.0643 resistance. The trajectory points to a 1.0203 Fibonacci level, with downside risks heightened by the 55-day EMA at 1.0698.
Key Points
- Neutral intraday stance for EUR/USD, with a bearish inclination due to 1.0643 resistance.
- Potential for descent continuation towards 1.0203 Fibonacci level.
- Downside risks are amplified by the 55-day EMA barrier at 1.0698.
