EUR/USD Price Analysis: Looks set for a breakdown below 1.0540

EUR/USD has turned sideways as investors await US Durable Goods Orders data for fresh impetus.
Rising wage offerings by US firms to acquire talent in a tight labor market has propelled households’ spending.
A range shift move by the RSI (14) indicates that the downside momentum has been triggered.

Sagar Dua FXStreet

The EUR/USD pair is displaying a lackluster performance around 1.0550 in the Asian session. The volatility in the major currency pair has squeezed after a sheer downside inspired by the surprise jump in the United States consumer spending data released on Friday.

Rising wage offerings by the US firms to acquire talent in a tight labor market have propelled households’ spending. This has triggered fears of a continuation of the policy tightening spree by the Federal Reserve (Fed). The US Dollar Index (DXY) is demonstrating a subdued performance around 104.80 and is awaiting the release of the US Durable Goods Orders data for fresh cues.

Thursday’s Doji formation was confidently broken by the market participants, which resulted in a trend continuation toward the downside. The Euro bulls are expected to find a cushion around the horizontal support plotted from 15 November 2022 high around 1.0482.

Downward-sloping 10-and 20-period Exponential Moving Averages (EMAs) at 1.0631 and 1.0381 respectively, adds to the downside filters.

The Relative Strength Index (RSI) (14) has displayed a range shift move from the 40.00-60.00 range to the bearish range of 20.00-40.00, which indicates that the downside momentum has been triggered.

For further downside, a breakdown of February 24 low at 1.0536 will drag the asset towards 15 November 2022 high around 1.0482 followed by 16 November 2022 high at 1.0439.

On the flip side, a recovery move above the round-level resistance at 1.06000 will drive the asset toward February 22 high at 1.0658. A break above February 22 high will expose the asset to February 20 high around 1.0700.

EUR/USD daily chart

EUR/USD

Overview
Today last price	1.0553
Today Daily Change	0.0006
Today Daily Change %	0.06
Today daily open	1.0547

Trends
Daily SMA20	1.073
Daily SMA50	1.0726
Daily SMA100	1.0451
Daily SMA200	1.0331

Levels
Previous Daily High	1.0614
Previous Daily Low	1.0536
Previous Weekly High	1.0705
Previous Weekly Low	1.0536
Previous Monthly High	1.093
Previous Monthly Low	1.0483
Daily Fibonacci 38.2%	1.0566
Daily Fibonacci 61.8%	1.0585
Daily Pivot Point S1	1.0517
Daily Pivot Point S2	1.0488
Daily Pivot Point S3	1.0439
Daily Pivot Point R1	1.0596
Daily Pivot Point R2	1.0644
Daily Pivot Point R3	1.0674

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

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