- EUR/USD is auctioning in an inventory distribution phase near a two-decade low at around 0.9900.
- A bear cross, represented by 20-and 50-EMAs, adds to the downside filters.
- The RSI (14) has shifted into the bearish range of 20.00-40.00 that indicating more weakness ahead.
The EUR/USD pair is displaying a lackluster performance after failing to overstep the immediate hurdle of 0.9960 in the late New York session. The asset witnessed a steep fall on Thursday after surrendering the 1.0000 magical figure. Currently, the overall price action indicates that 1.0000 will remain a dream level for the EUR/USD pair as the asset is gearing up for a fresh bearish impulsive wave.
On an hourly scale, the asset has already halted the tad-wider consolidation formed in a 0.9900-1.0095 range. The asset is auctioning around the lower levels and a failure in achieving a reversal signifies inventory distribution for more downside. A decisive break below the consolidation will trigger volatility expansion.
A bear cross, represented by the 20-and 50-period Exponential Moving Averages (EMAs) at 1.0016 indicates more weakness ahead.
Meanwhile, the Relative Strength Index (RSI) (14) has shifted into the bearish range of 20.00-40.00 after remaining in the neutral range of 40.00-60.00 for a tad longer period. This has triggered a fresh downside move ahead.
A decisive drop below Thursday’s low at 0.9910 will drag the asset towards the round-level support at 0.9800 followed by the 1 January 2001 high at 0.9600.
Alternatively, the shared currency bulls could regain their glory if the asset oversteps the August 26 high at 1.0090. An occurrence of the same will send the major towards August 17 high at 1.0203 and August 4 high at 1.0254.
EUR/USD hourly chart
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 holds gains above 1.0700, as key US data loom
EUR/USD holds gains above 1.0700 in the European session on Thursday. Renewed US Dollar weakness offsets the risk-off market environment, supporting the pair ahead of the key US GDP and PCE inflation data.
GBP/USD extends recovery above 1.2500, awaits US GDP data
GBP/USD is catching a fresh bid wave, rising above 1.2500 in European trading on Thursday. The US Dollar resumes its corrective downside, as traders resort to repositioning ahead of the high-impact US advance GDP data for the first quarter.
Gold price edges higher amid weaker USD and softer risk tone, focus remains on US GDP
Gold price (XAU/USD) attracts some dip-buying in the vicinity of the $2,300 mark on Thursday and for now, seems to have snapped a three-day losing streak, though the upside potential seems limited.
XRP extends its decline, crypto experts comment on Ripple stablecoin and benefits for XRP Ledger
Ripple extends decline to $0.52 on Thursday, wipes out weekly gains. Crypto expert asks Ripple CTO how the stablecoin will benefit the XRP Ledger and native token XRP.
US Q1 GDP Preview: Economic growth set to remain firm in, albeit easing from Q4
The United States Gross Domestic Product (GDP) is seen expanding at an annualized rate of 2.5% in Q1. The current resilience of the US economy bolsters the case for a soft landing.