• A firmer rebound in the risk-on mood has underpinned the eurozone against the greenback.
  • The shared currency bulls have attacked the 50-EMA, which signals an initiative buying activity.
  • A (40.00-60.00) range move by the RSI (14) is favoring consolidation ahead.

The EUR/USD pair has attracted some significant offers around 1.0400 in the Tokyo session amid a rebound in the positive market sentiment. A recovery in the asset is observed after a sheer downside move from Thursday’s high at 1.0774. The pair has turned sideways in a range of 1.0397-1.0418 from the last two trading sessions.

The formation of an Inverted Flag chart pattern on an hourly scale is indicating a consolidation phase after a sheer downside move, which will be followed by a fresh leg of selling on the counter. Usually, a consolidation phase denotes inventory distribution by the initiative sellers, who enter an auction after an establishment of a bearish bias.

The greenback bulls have confidently defended the 50-period Exponential Moving Average (EMA) at 1.0485, which adds to the downside filters.

Meanwhile, the Relative Strength Index (RSI) (14) is oscillating in a 40.00-60.00 range, which signals a continuation of a rangebound move.

A slippage below Monday’s low at 1.0400 will trigger the Inverted Flag formation and will drag the asset towards May 12 low at 1.0350, followed by the round-level cushion at 1.0300.

Alternatively, the shared currency bulls could regain their glory if the asset oversteps Tuesday’s high at 1.0485. An occurrence of the same will send the asset towards May 20 low at 1.0571. A breach of the May 20 low on the upside will drive the asset towards the round-level resistance at 1.0600.

EUR/USD hourly chart

EUR/USD

Overview
Today last price 1.0445
Today Daily Change 0.0029
Today Daily Change % 0.28
Today daily open 1.0416
 
Trends
Daily SMA20 1.0645
Daily SMA50 1.0658
Daily SMA100 1.0908
Daily SMA200 1.1189
 
Levels
Previous Daily High 1.0485
Previous Daily Low 1.0397
Previous Weekly High 1.0774
Previous Weekly Low 1.0506
Previous Monthly High 1.0787
Previous Monthly Low 1.035
Daily Fibonacci 38.2% 1.0451
Daily Fibonacci 61.8% 1.0431
Daily Pivot Point S1 1.0381
Daily Pivot Point S2 1.0345
Daily Pivot Point S3 1.0293
Daily Pivot Point R1 1.0468
Daily Pivot Point R2 1.0521
Daily Pivot Point R3 1.0556

 

 

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.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD falls toward 0.9600 amid renewed dollar strength

EUR/USD falls toward 0.9600 amid renewed dollar strength

EUR/USD has turned south and declined toward 0.9600 in the second half of the day on Monday. A sharp decline witnessed in the GBP/USD pair and the souring market mood provided a boost to the dollar, lifting the US Dollar Index back above 114.00. 

EUR/USD News

GBP/USD falls below 1.0700 following BoE statement

GBP/USD falls below 1.0700 following BoE statement

GBP/USD came under renewed bearish pressure and slumped below 1.0700 during the American trading hours. In a statement published on Monday, the Bank of England said that they welcome the government's commitment to sustainable economic growth, triggering another GBP selloff.

GBP/USD News

Gold could soon challenge the $1,600 level

Gold could soon challenge the $1,600 level

Demand for the dollar continued at the beginning of the week, resulting in XAUUSD plummeting to $1,626.67, its lowest since April 2020. Concerns about potential recessions undermined the dismal market’s mood, pushing the greenback higher despite its extreme overbought conditions.

Gold News

Bitcoin: Investors need to prepare for volatile breakout

Bitcoin: Investors need to prepare for volatile breakout

Bitcoin price has been devoid of volatility for the last week and has been in a tight consolidation without directional bias whatsoever. This range bound move has formed a triangle pattern which could break either way. 

Read more

Three stocks that will be in the news this week: Amazon, Nike, Micron Technology

Three stocks that will be in the news this week: Amazon, Nike, Micron Technology

The S&P 500 index lost 4.1% last week and left traders melancholy with another week to go in this dreadful September. The S&P 500 index is down 6.6% so far in the month that is already known for poor performance, and most seem to think the pain will continue. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures