EUR/USD Price Analysis: Falls to near 1.0700 before a throwback support
- The EUR/USD pair could test a throwback support at the 1.0670 level.
- The daily chart suggests a bearish bias as the pair consolidates within a descending channel.
- The immediate resistance appears at the 14-day EMA at the level of 1.0743.
EUR/USD extends its losses for the second consecutive day, trading around 1.0710 during the Asian session on Wednesday. A technical analysis of the daily chart suggests a bearish bias for the pair, as it consolidates within the descending channel.
Additionally, the 14-day Relative Strength Index (RSI) momentum indicator is positioned below the 50 level, suggesting a confirmation of a bearish bias for the EUR/USD pair.
The EUR/USD pair could find immediate support at the psychological level of 1.0700. A break below this level could exert downward pressure on the pair to test the throwback support at the level of 1.0670.
Further decline would strengthen the bearish bias, and the pair could navigate the region around the lower boundary of the descending channel near the 1.0640 level.
On the upside, the EUR/USD pair could meet the immediate barrier at the 14-day Exponential Moving Average (EMA) at 1.0743. A breakthrough above this level could lead the pair to test the area around the psychological level of 1.0800 and the upper boundary of the descending channel nearing the level of 1.0810.
Further resistance appears at the vicinity of the significant level of 1.0900 and a three-month high at 1.0915, which was recorded on June 4.
EUR/USD: Daily Chart
Author
Akhtar Faruqui
FXStreet
Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.
