Daily Forex Analysis – EUR/USD
The intraday perspective for the EUR/USD pair currently leans towards bullish prospects. A decisive ascent past the 1.0768 resistance point — a 38.2% Fibonacci retracement of the move from 1.1278 down to 1.0451 — would signal a continuation of the rally from 1.0451, potentially reaching the 61.8% retracement level at 1.0962. Should the pair retreat below the minor support at 1.0670, the immediate bias would shift to neutral.
Broadening the scope, the price activity from the 2022 high of 1.1278 appears to be forming a corrective pattern against the upward swing that started from the 2022 low of 0.9538. The current upswing from 1.0451 is provisionally regarded as the second phase of this broader pattern. While an extension of the rally is plausible, it is expected that any further upward movements would be capped by the 1.1278 resistance, potentially setting up for the third leg of the corrective structure.
This analysis proposes that while near-term trends point to bullish momentum for the EUR/USD, the larger pattern suggests a cap to the rally with the potential for a complex correction.
Analysis Summary
The EUR/USD is facing a bullish intraday bias with the potential to challenge the 1.0962 level if it breaks above 1.0768. However, in the wider view, the advance seems to be part of a larger correction, with significant resistance anticipated at 1.1278, hinting at a forthcoming third corrective leg.
Key Bullet Points
- EUR/USD intraday trend aims for 1.0962 on a breakout.
- Minor support at 1.0670 could pivot to a neutral stance.
- Overall, the rise faces a ceiling at 1.1278 resistance.
