0.9810 - Thur's fresh 20-year low.
0.9760 - 61.8% proj. of 1.0050-0.9810 fm 0.9908.
0.9739 - 1.236 times ext. of 1.0197-0.9945 fm 1.0050.

EUR/USD - 0.9843.. Although euro remained on the back foot in Asia n penetrated Wed's post-FOMC 0.9814 low to a fresh 2-year 0.9810 trough, price jumped to 0.9908 on usd's weakness due to BoJ's yen buying b4 falling to 0.9813 in NY.

On the bigger picture, despite euro's LT upmove fm 2017 near 14-year low of 1.0341 to a fresh 3-year peak of 1.2555 in mid-Feb 2018, decline to a near 3-year 1.0637 low (Mar 2020) signals correction has ended. Although euro staged a rally to a near 33-month 1.2349 peak in early Jan 2021, subsequent selloff to 1.1705 (Mar) signals top is made. Euro's break of 1.1705 n then firm breach below 2020 bottom at 1.0637 in Apr to a 5-year bottom of 1.0350 in mid-May n then break of 2017 trough of 1.0341 to a 20-year low of 0.9865 last week suggests the pair would head twd 0.9800 later, reckon 0.9700 should hold. Last Mon's gain to 1.0197 would yield choppy swings b4 down n only a daily close abv 1.0197 risks 1.0293.

Today, as price has fallen after a short-covering rebound fm 0.9810 to 0.9908, below 0.9810 would extend weakness twd 0.9760, 'bullish convergences' would prevent steep fall n risk has increased for a correction to occur next week. A daily close abv 0.9910 yields retrace. to 0.9945, then 0.9995/99 Mon.

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AceTrader Team

AceTrader

Led by world-renowned technical analyst Wilson Leung, we have a team of 7 analysts monitoring the market and updating our recommendations and commentaries 24 hours a day.

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