The recent rise in EURUSD was rejected at highs of 1.1365 reached on August 18 and since then prices eased lower to test the key 1.1300 level. The upside move from 1.0951 (June 24 low) lost momentum as RSI reached near overbought levels around 70 and then turned back down.
Immediate support lies at the August 22 low of 1.1270, which also coincides with the 23.6% Fibonacci level (retracement of 1.0951 to 1.1365).
The medium term outlook for EURUSD is still considered bullish as long as the market remains above the 100-day moving average which is now a major support level on the downside. RSI is still in bullish territory above 50.
A break below 1.1224 support (100-day moving average) would give an indication that a short-term top is in place at 1.1365 and would diminish the prospects for an upside move to retest this high.
Forex trading and trading in other leveraged products involves a significant level of risk and is not suitable for all investors.
Recommended Content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.