- EUR/USD is continuously facing selling pressure from 61.8% Fibo retracement around 1.0700.
- The 89-period (High-Low) SMA band is barricading the Euro consistently.
- A slippage by the RSI (14) into the bearish range of 20.00-40.00 will trigger a downside momentum
The EUR/USD pair has retreated after facing selling interest around 1.0650 in the early Tokyo session. The major currency pair remained extremely volatile as upbeat United States preliminary S&P PMI data resulted in accelerating odds for the continuation of the policy tightening spell by the Federal Reserve (Fed).
Risk-perceived assets like S&P500 witnessed a vertical sell-off as upbeat US PMI data strengthened recession fears. The Fed is going to consider the rebound in the scale of economic activities as a threat to the declining trend in the Consumer Price Index (CPI), which will be addressed by more rate hikes. This pushed the alpha provided on the 10-year US Treasury bonds to 4%.
Meanwhile, the upbeat Eurozone ZEW Survey- Economic Sentiment failed to provide support to the Euro. Higher-than-anticipated sentiment data indicates that the majority of institutional investors are holding an optimistic view on the economic projections.
The presence of potential sellers at the 61.8% Fibonacci retracement (placed from January 6 low at 1.0483 to February high at 1.1033) at 1.0693 is heavily deploying pressure on EUR/USD. This could drag the shared currency pair further.
The 89-period (High-Low) Simple Moving Average (SMA) band is barricading the Euro consistently.
Meanwhile, the Relative Strength Index (RSI) (14) is on the verge of slipping into the bearish range of 20.00-40.00. An occurrence of the same will trigger a downside momentum.
A decisive downside move below February 17 low at 1.0613 will drag the asset toward December 22 low at 1.0573. A slippage below the latter will extend the downside toward January 6 low at 1.0483.
In an alternate scenario, a break above February 16 high at 1.0722 will drive the asset toward 50% Fibo retracement at 1.0758, followed by February 14 high around 1.0800.
EUR/USD two-hour chart
|Today last price||1.0648|
|Today Daily Change||-0.0037|
|Today Daily Change %||-0.35|
|Today daily open||1.0685|
|Previous Daily High||1.0705|
|Previous Daily Low||1.067|
|Previous Weekly High||1.0805|
|Previous Weekly Low||1.0613|
|Previous Monthly High||1.093|
|Previous Monthly Low||1.0483|
|Daily Fibonacci 38.2%||1.0683|
|Daily Fibonacci 61.8%||1.0692|
|Daily Pivot Point S1||1.0668|
|Daily Pivot Point S2||1.0652|
|Daily Pivot Point S3||1.0634|
|Daily Pivot Point R1||1.0703|
|Daily Pivot Point R2||1.0721|
|Daily Pivot Point R3||1.0737|
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.