There are however some developments in the daily chart that worth watching, starting with the weekly opening well below Friday’s doji, and the unfilled gap left then. Earlier in the week the picture suggested the beginning of a reversal, some exhaustion in the dominant bullish trend. Even further, this week candles shown long upper shadows that reflect the increasing bearish pressure the pair is suffering nowadays.
But beyond being sort of an alert, the fact is that there is no technical confirmation yet, the pair has topped out and is ready to reverse course: in the same time frame, price stands above a flat 20 SMA and indicators in neutral territory, while price also held above the 38.2% retracement of its latest bullish run around 1.3780, all of which result of a consolidative stage rather than a new trend developing.
The chart also shows that price remains above the long term daily ascendant trend line coming from 1.2755, July 2013 monthly low, around 1.3750 for the upcoming week. As long as above this level, risk to the downside remains contained, while below the pair may attempt a test of the 1.3640/60 strong static support zone. But it will only be with a break below this last that the pair will lose its upward potential.
Weighted by words, the pair failed to close the weekly opening gap as said before, still waiting there in the 1.3890 price zone: it will take a price acceleration above this last to confirm a retest of the year high in the 1.3966 region, while once above market will be looking to test the critical 1.4000 level.
View Live Chart for EUR/USD
Recommended Content
Editors’ Picks
RBA keeps interest rate unchanged at 4.35% in March, as expected
The Reserve Bank of Australia (RBA) board members decided to hold the Official Cash Rate (OCR) steady at 4.35% after its March monetary policy meeting on Tuesday. The policy announcement was widely expected by the markets. The RBA extended its pause for the third meeting in a row, having lifted the rate by 25 basis points (bps) in November.
USD/JPY pares gains below 149.50 ahead of crucial BoJ policy decision
USD/JPY is paring back gains below 149.50 in the Asian session on Tuesday, picking up fresh bids. Traders keenly await the highly-anticipated Bank of Japan policy decision. The BoJ's outlook on the negative interest rate policy and the Yield Curve Control (YCC) will play a key role in influencing the Japanese Yen.
Gold price flat-lines above one-week low, awaits the crucial Fed decision on Wednesday
Gold price oscillates in a range and is influenced by a combination of diverging forces. Hawkish Fed expectations, elevated US bond yields and a bullish USD cap the upside. Geopolitical risks lend some support to the XAU/USD ahead of the key FOMC meeting.
Avalanche price could rise 20% on gaming narrative ahead of GDC conference
Avalanche is an outlier on Monday, rallying while the broader market is crashing. It has outperformed Bitcoin price, as well as meme and AI crypto coins, sectors that have been thriving of late.
Lots of tension ahead of this week's Fed decision
Last week, we got a strong round of US economic data accompanied by hotter US inflation reads. The takeaway of course is that there might be a lot more pressure on the Fed to be looking to scale back its rate cut outlook at this week’s meeting.