• Volatility contraction escalates on a follow-up Diamond after a consolidation.
  • Overlapping 50-EMA with asset prices is hinting at a sideways move ahead.
  • The shared currency bulls are continuously facing barricades around 1.0200.

The EUR/USD pair has displayed a gradual decline and has slipped to near 1.0193 after failing to surpass the critical hurdle of 1.0220 in the New York session. On a broader note, the asset is advancing modestly after printing a low of 1.0146 last week. The asset is facing barricades in establishing above the psychological resistance of 1.0200

A formation of a Diamond pattern after a prolonged consolidation indicates that the asset is still inside the woods and will take sufficient time to conclude its volatility contraction. Usually, a breakout of a volatility contraction in an asset is followed by volumes and wide-range ticks.

The 50-period Exponential Moving Average (EMA) at 1.0193 is overlapping with the asset prices, which signals a consolidation ahead.

Also, the Relative Strength Index (RSI) (14) is oscillating in the 40.00-60.00 range, which indicates that the market participants are awaiting a fresh trigger for a decisive move.

A decisive move above Thursday’s high at 1.0254 will drive the asset towards the August 2 high at 1.0294, followed by June 15 low at 1.0359.

Alternatively, the greenback bulls could cripple the upside bias if the asset drops below July 27 low at 1.0097, which will drag the asset towards July 14 high at 1.0050. A breach of the latter will unleash the greenback bulls for more downside towards July 14 low at 0.9952.

EUR/USD hourly chart

EUR/USD

Overview
Today last price 1.0194
Today Daily Change 0.0032
Today Daily Change % 0.31
Today daily open 1.0162
 
Trends
Daily SMA20 1.016
Daily SMA50 1.0375
Daily SMA100 1.0562
Daily SMA200 1.0929
 
Levels
Previous Daily High 1.0252
Previous Daily Low 1.0142
Previous Weekly High 1.0294
Previous Weekly Low 1.0123
Previous Monthly High 1.0486
Previous Monthly Low 0.9952
Daily Fibonacci 38.2% 1.0184
Daily Fibonacci 61.8% 1.021
Daily Pivot Point S1 1.0118
Daily Pivot Point S2 1.0075
Daily Pivot Point S3 1.0007
Daily Pivot Point R1 1.0229
Daily Pivot Point R2 1.0296
Daily Pivot Point R3 1.0339

 

 

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