EUR/USD Price Analysis: Daily W-formation could be playing out, eyes on break of 1.0820/00

EUR/USD bulls could be running into a wall of supply.
EUR/USD Price Analysis: Bears have been capped and eyes are on 1.0720 is playing out as bears move in.

Ross J Burland FXStreet

Following on from prior analysis on Monday, EUR/USD bulls remain in a precarious position on the charts, swamped by offers below the 1.0850s following a break of a microstructure around 1.0820. The following depicts the prospects of a significant breakout to the downside for the days ahead.

EUR/USD H4 chart

The price is moving into the 38.2% Fibonacci area as measured across the bearish impulse range between 1.0801 and 1.0874. Failures to break above the latter would be expected to see net shorts building up to swallow up the length that will eat into the in-the-money bulls from 1.0700 breakouts.

The above thesis is built upon the daily chart's W-formation as follows:

The W-pattern is a reverison formation and the price is expected to dip into the bullish impulse for a restest for prior structure if not all the way into the neckline.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

EUR/USD struggles to build on recent rebound, holds above 1.1550

EUR/USD trades marginally lower on the day but holds above 1.1550 in the American session, following Thursday's rebound. The pair holds near its intraday high as the US Dollar remains pressured by hopes the Middle East conflict will soon come to an end.

GBP/USD hovers around 1.3400 as investors await war clarity

GBP/USD remains near its daily open, not far from 1.3400, in the second half of Friday's session. The US Dollar lost its previous intraday strength and weakens as investors await clarity on the US-Iran war.

Gold stabilizes above $4,200 as wait-and-see continues

After rising more than 3% on Thursday, Gold (XAU/USD) stabilized around the $4,200 mark in the American session on Friday. The US dollar seesaws between gains and losses, but remains within familiar levels as investors remain skeptical yet hopeful about a resolution to the Middle East conflict.

Crypto Today: Bitcoin, Ethereum, XRP recovery slows amid incessant capital outflows

The cryptocurrency remains in a broader corrective bias on Friday, despite majors such as Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) holding slightly higher than early-week support levels.

SpaceX launches 24% higher at Friday debut

Space Exploration Technologies (SPCX), aka SpaceX, zoomed 24% higher soon after the start of its first IPO trading day on Friday. Shares of the rocket and artificial intelligence (AI) company founded by Elon Musk began trading at about 11:46 am EST and quickly gained speed.

4.2% headline, 0.2% core: Why the Fed's next hike may be targeting the wrong problem

May's CPI put headline inflation at 4.2% on the year, up from 3.8% in April and the hottest reading since April 2023, while core prices rose just 0.2% on the month, undershooting the 0.3% consensus and halving April's pace.