- EUR/USD recovers from five-year high but stays inside bearish chart pattern.
- 50-HMA, bearish MACD signals add strength to the downside bias.
- Oversold RSI on D1 underpins corrective pullback, multiple hurdle test the buyers.
EUR/USD holds onto the initial Asian session recovery from the lowest levels since 2017 around 1.0520 during the very early European morning on Friday.
Although recently bullish MACD signals on the hourly chart favor the pair buyers, the resistance line of a one-week-old descending trend channel and the 50-HMA challenges the further upside around 1.0540-45.
EUR/USD: Hourly chart
Trend: Bearish
Even if the quote rises past 1.0545, 161.8% Fibonacci retracement of the previous month’s up-moves, near 1.0585, will challenge the EUR/USD bulls.
Also acting as the upside filter is the previous support line from November 2021, close to 1.0600 by the press time.
Alternatively, the latest bottom surrounding 1.0470 and the bearish channel’s lower line, near 1.0400, will test the short-term bears.
In a case where the EUR/USD prices drop further below 1.0400, the year 2017 trough surrounding 1.0340 will be in focus.
EUR/USD: Daily chart
Trend: Corrective pullback can’t be ruled out
Also read: EUR/USD rebounds from five-year low towards 1.0550 ahead of Eurozone GDP, US PCE inflation data
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD stays below 1.0700 ahead of US data
EUR/USD stays in a consolidation phase slightly below 1.0700 in the European session on Wednesday. Upbeat IFO sentiment data from Germany helps the Euro hold its ground as market focus shifts to US Durable Goods Orders data.
USD/JPY refreshes 34-year high, attacks 155.00 as intervention risks loom
USD/JPY is renewing a multi-decade high, closing in on 155.00. Traders turn cautious on heightened risks of Japan's FX intervention. Broad US Dollar rebound aids the upside in the major. US Durable Goods data are next on tap.
Gold manages to hold above $2,300
Gold struggles to stage a rebound following Monday's sharp decline but manages to hold above $2,300. The benchmark 10-year US Treasury bond yield stays in the green above 4.6% ahead of US data, not allowing XAU/USD to gain traction.
Worldcoin looks set for comeback despite Nvidia’s 22% crash Premium
Worldcoin price is in a better position than last week's and shows signs of a potential comeback. This development occurs amid the sharp decline in the valuation of the popular GPU manufacturer Nvidia.
Three fundamentals for the week: US GDP, BoJ and the Fed's favorite inflation gauge stand out Premium
While it is hard to predict when geopolitical news erupts, the level of tension is lower – allowing for key data to have its say. This week's US figures are set to shape the Federal Reserve's decision next week – and the Bank of Japan may struggle to halt the Yen's deterioration.