EUR/USD Price Analysis: Retreats from 1.0650 amid dismal market mood


  • 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

EUR/USD

Overview
Today last price 1.0648
Today Daily Change -0.0037
Today Daily Change % -0.35
Today daily open 1.0685
 
Trends
Daily SMA20 1.0788
Daily SMA50 1.0728
Daily SMA100 1.0421
Daily SMA200 1.033
 
Levels
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

 

 

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