EUR/USD Daily Analysis
EUR/USD intraday bias remains biased towards the downside. The currency pair is witnessing a decline from its short-term high of 1.1020, with a potential target at the 55-day Exponential Moving Average (EMA), currently situated at 1.0774. Should the EUR/USD manage to climb above the 1.0916 minor resistance level, the intraday bias would shift to neutral, temporarily halting the downward movement. A further breach above 1.1020 could renew the uptrend, potentially challenging the 1.1278 high.
The price movements from the high of 1.1278 are interpreted as a corrective pattern following the rise from the 2022 low of 0.9538. The ascent from 1.0451 is tentatively considered the second leg of this pattern. While there is room for further upward movement, it is expected to encounter resistance at 1.1278, which would likely initiate the third leg of the corrective pattern. Conversely, a sustained break below the 55 D EMA would suggest that the third leg has already commenced, targeting 1.0451 and possibly lower levels.
Analysis Summary
This analysis of EUR/USD indicates a short-term downtrend with a focus on the 55-day EMA at 1.0774. A shift above 1.0916 could neutralize the bias, but resistance at 1.1278 is likely to cap gains and initiate a third corrective leg.
Key Points
- Short-term downtrend in EUR/USD, targeting 1.0774 (55 D EMA).
- A move above 1.0916 could neutralize the current bias.
- Resistance at 1.1278 may trigger the third corrective leg.
