EUR/USD Price Analysis: Breaks under the 1.1300 figure as bears eye 2021 yearly low
|- On Thursday, the euro edges lower some 0.11%.
- A risk-off market mood and higher US bond yields boost the greenback prospects.
- EUR/USD Technical Outlook: Bearish biases, but a daily close below the 1.1300 figure could accelerate the downtrend towards the 2021 yearly low at 1.1186.
The shared currency slumps as the North American session ends, trading at 1.1293 at the time of writing. Market conditions worsened as the US equity markets indices closed in the red, with losses between 0.04% and 0,47%, favoring the greenback’s prospects to the detriment of the euro.
Also, as Wall Street closes, the US 10-year Treasury yield advances 2.99 basis points, sitting at 1.7299%, underpins the greenback. The US Dollar Index, which measures the buck’s value against six peers, advances 0.11%, up at 96.26.
EUR/USD Price Forecast: Technical outlook
On Thursday, during the overnight session, the EUR/USD seesawed around the daily pivot point in the 1.1300-18 range, ahead of the European session. In the overlap of the Asian and European session, the EUR]/USD dipped to 1.1285, followed by a jump above the confluence of the 100 and the 200-hour simple moving averages (SMAs) at 1.1313 and 1.1317, respectively, reaching a daily high of 1.1332.
At press time, the euro is under selling pressure, as witnessed by the price action around the daily pivot point, which shows seven candlesticks, with just one piercing aggressively upwards, surrendered later, as sellers meander around the confluence of the 100 and the 200-hour SMA.
On the downside, the first support would be the S1 daily pivot point at 1.1278. A break under that level exposes crucial support levels like the January 4 daily low at 1.1272, followed by the upslope trendline around 1.1255-60 area, and then the S2 daily pivot point at 1.1243.
To the upside, the EUR/USD first resistance would be the confluence of the daily pivot point and the 100 and 200-hour SMA around the 1.1310-20 area. The breach of the latter would expose the January 5 daily high at 1.1346, followed by the January 3 cycle high at 1.1366.
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