EUR/USD Price Analysis: Fades bounce off 200-HMA amid bearish RSI divergence


Share:
  • EUR/USD renews intrday high but the bulls struggle to keep the reins during five-day uptrend.
  • Successful trading above 200-HMA, immediate resistance break favor buyers.
  • RSI (14) fails to accompany higher lows on prices, suggesting the lack of strength in upside momentum.

EUR/USD picks up bids to refresh intraday top near 1.0910 during early Wednesday,  staying firmer for the fifth consecutive day. Even so, the buyers struggle to keep the driver’s seat as of late. In doing so, the Euro fades the bounce off the 200-Hour Moving Average (HMA), as well as struggling to rise despite breaking a downward-sloping trend line from Monday.

It’s worth noting that the sluggish MACD signals join the RSI's (14) inability to back the EUR/USD run-up, marked by higher lows on prices and lower lows on the RSI, to lure the pair sellers.

However, a clear downside break of the previous resistance line, around 1.0870 by the press time, appears necessary for the pair sellers to take entries.

Even so, the 200-HMA level surrounding 1.0840 could act as the last defense of the EUR/USD bulls, a break of which should open the door for the pair’s slump towards the early month peak surrounding 1.0760.

On the contrary, the monthly high near 1.0930 will precede a late April 2022 peak of 1.0935 to attract EUR/USD buyers.

Following that, the run-up will find a hard time as the 1.1000 round figure and March 2022 top close to 1.1185 could challenge the north run.

EUR/USD: Hourly chart

Trend: Pullback expected

Additional important levels

Overview
Today last price 1.0898
Today Daily Change 0.0016
Today Daily Change % 0.15%
Today daily open 1.0882
 
Trends
Daily SMA20 1.0736
Daily SMA50 1.0592
Daily SMA100 1.0251
Daily SMA200 1.0311
 
Levels
Previous Daily High 1.0898
Previous Daily Low 1.0835
Previous Weekly High 1.0888
Previous Weekly Low 1.0766
Previous Monthly High 1.0736
Previous Monthly Low 1.0393
Daily Fibonacci 38.2% 1.0874
Daily Fibonacci 61.8% 1.0859
Daily Pivot Point S1 1.0845
Daily Pivot Point S2 1.0809
Daily Pivot Point S3 1.0783
Daily Pivot Point R1 1.0908
Daily Pivot Point R2 1.0934
Daily Pivot Point R3 1.0971

 

 

Share: Feed news

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.

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content

Editors’ Picks

AUD/USD holds lower ground near 0.6950 amid US Presi. Biden's SOTU

AUD/USD holds lower ground near 0.6950 amid US Presi. Biden's SOTU

AUD/USD has turned south and tested 0.6950 amid a pause in the US Dollar decline this Wednesday. Markets pay close attention to US President Joe Biden's annual State of the Union speech. Biden delivered some tough remarks on China. 

AUD/USD News

EUR/USD grinds higher past 1.0700 even as US President Biden’s SOTU sounds tough on China

EUR/USD grinds higher past 1.0700 even as US President Biden’s SOTU sounds tough on China

EUR/USD floats around 1.0725-30 after snapping a four-day downtrend as the pair traders struggle to believe in the hawkish comments from US President Joe Biden’s State of the Union (SOTU) speech.

EUR/USD News

Gold bulls eye 50% mean reversion

Gold bulls eye 50% mean reversion

The Gold price finished the day pretty much unchanged amid a US Dollar which was mixed across the board, pushed and pulled over the comments from the Federal Reserve's Jerome Powell who was speaking at The Economic Club of Washington, D.C. Signature Even.

Gold News

Why Cosmos price is likely to rally toward $17 in February

Why Cosmos price is likely to rally toward $17 in February

Cosmos price continues to display strength as the uptrend seems unfazed by investors who may be taking profit off January's 70% gain. Considering the overall bullish stance in the crypto market, a 15% rally from today’s market value is a conservative estimate.

Read more

Soft landing, hard landing, no landing?

Soft landing, hard landing, no landing?

The Dollar has started the year on a soft footing on the view that the Fed can respond to a soft US landing, as the Rest of the World recovers. The recent run of data, especially out of the US, questions whether the Fed needs to cut rates at all.

Read more

Forex MAJORS

Cryptocurrencies

Signatures