EUR/USD Price Analysis: Remains below 1.0750 after breaking below the rectangle formation
- The EUR/USD pair could test a level of 1.0700 following the throwback support level of 1.0601.
- Technical analysis of the daily chart suggests a bearish bias for the pair.
- The immediate barrier appears at the lower boundary of the rectangle formation around the 50-day EMA at 1.0802.
EUR/USD extends its losses for the second consecutive day, trading around 1.0730 during the Asian session on Friday. A technical analysis of a daily chart suggests a bearish bias for the pair, as it struggles below the lower threshold of a rectangle formation.
Additionally, the momentum indicator 14-day Relative Strength Index (RSI) 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 level of 1.0601.
On the upside, the EUR/USD pair could re-test the lower boundary of the rectangle formation around the 50-day Exponential Moving Average (EMA) at 1.0802. A return to the rectangle formation could weaken the bearish bias and reinforce the pair to explore the psychological level of 1.0900, aligned with the upper boundary of the rectangle formation around the level of 1.0905.
A breakthrough above the latter could support the pair to explore the region around March’s high of 1.0981.
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.
