EURUSD has barely distanced itself above Wednesday’s 14-month low of 1.1528, but the recent faint bullish attempt could still see further continuation according to the technical picture.
First the pair seems to have created a bullish inverted hammer candlestick near its recent lows before rotating higher – a sign that buyers could gain confidence in the near term. Then, the RSI and the fast-Stochastics have both registered a higher low after bottoming out in the oversold area, while the MACD has eased its negative momentum, all endorsing improvement in market sentiment.
The 1.1600 psychological mark may first attract interest if the positive scenario materializes. This is also where the red Tenkan-sen line, which has been curbing upside movements since the start of September, happens to be. A violation at this point could extend up to the 20-day simple moving average (SMA) at 1.1663, while within breathing distance, the 23.6% Fibonacci of the 1.2265 – 1.1528 down leg could motivate some selling ahead of the 1.1753 restrictive region.
In the big picture, however, only a sustainable move above the key resistance of 1.1908 and particularly a close above the 200-day SMA would dissolve the bearish trend.
Should the bulls lose the battle instead, with the price retreating below the 1.1528 trough, immediate support could develop around the challenging barrier of 1.1450, last active during the March-July 2020 period. Below that, traders may next seek footing around 1.1365.
In summary, Friday’s recovery mode is expected to continue in the short term, likely facing some restrictions around 1.1600.
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
AUD/USD hovers around 0.6500 amid light trading, ahead of US GDP
AUD/USD is trading close to 0.6500 in Asian trading on Thursday, lacking a clear directional impetus amid an Anzac Day holiday in Australia. Meanwhile, traders stay cautious due ti risk-aversion and ahead of the key US Q1 GDP release.
USD/JPY finds its highest bids since 1990, near 155.50
USD/JPY keeps breaking into its highest chart territory since June of 1990 early Thursday, testing 155.50 for the first time in 34 years as the Japanese Yen remains vulnerable, despite looming Japanese intervention risks. Focus shifts to Thursday's US GDP report and the BoJ decision on Friday.
Gold price treads water near $2,320, awaits US GDP data
Gold price recovers losses but keeps its range near $2,320 early Thursday. Renewed weakness in the US Dollar and the US Treasury yields allow Gold buyers to breathe a sigh of relief. Gold price stays vulnerable amid Middle East de-escalation, awaiting US Q1 GDP data.
Injective price weakness persists despite over 5.9 million INJ tokens burned
Injective price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price. Coupled with broader market gloom, INJ token’s doomed days may not be over yet.
Meta Platforms Earnings: META sinks 10% on lower Q2 revenue guidance Premium
This must be "opposites" week. While Doppelganger Tesla rode horrible misses on Tuesday to a double-digit rally, Meta Platforms produced impressive beats above Wall Street consensus after the close on Wednesday, only to watch the share price collapse by nearly 10%.