EUR/USD Price Analysis: Marches firmly towards parity, though remains downward biased
|- EUR/USD is closing towards the parity on speculations that the Fed could shift “dovish.”
- The EUR/USD continues its recovery, though shy of breaking the 50-day EMA above parity.
- For the EUR/USD to shift neutral, it needs to clear 1.0226; otherwise, the bias remains downwards.
The shared currency continues its recovery against the greenback, as the EUR/USD cleared the 20-day EMA at 0.9891 and climbed towards the 50-day EMA, though it fell short of reaching it, printing a daily high at 0.9997. At the time of writing, the EUR/USD is trading at 0.9984, up by 1.66%.
The EUR/USD extended its recovery due to some fundamental reasons. US Treasury bond yields edge lower as speculations of central banks tightening at a slower pace grew as reflected by a risk-on impulse. Therefore, as shown by the US Dollar Index, the greenback dropped from its YTD high at 114.77, to 110.184, at the time of typing.
EUR/USD Price Analysis: Technical outlook
The EUR/USD daily chart delineates that the euro, even though it recovered from two-decade lows, it is still downward biased. The major could shift its bias to neutral if it clears the 100-day EMA at 1.0226 and would shift bullish if the pair is back above 1.0615, which could pave the way for a 200-day EMA test at 1.0632. That said, failure at parity or the 50-day EMA at 1.0015 would expose the EUR/USD to selling pressure.
Therefore, the EUR/USD first support would be 0.9900, closely followed by the 20-day EMA at 0.9890. A breach of the latter will expose the 0.9800 figure, followed by the YTD low at 0.9635.
EUR/USD Key Technical Levels
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