EUR/USD Price Analysis: Struggles near six-month lows below 1.0650
- EUR/USD experiences pressure due to the Fed's projection of an additional rate hike in 2023.
- MACD line levels with the signal line, suggesting that recent momentum is relatively neutral.
- Six-month low lined up with the 1.0600 psychological level could act as immediate support.
EUR/USD extends the losses for the third successive day. Spot price is trading lower around 1.0640 during the Asian session on Thursday. As expected, the US Federal Reserve (Fed) chose to maintain the current benchmark policy rates at 5.5% during the meeting convened on Wednesday.
The Fed's projection of an additional rate hike in 2023 has exerted downward pressure on the EUR/USD pair. Furthermore, in its monetary policy statement, the Federal Open Market Committee (FOMC) has indicated an anticipation of slightly higher inflation compared to its previous forecasts.
The six-month low at 1.0616 marked on Thursday could act as immediate support, followed by the 1.0600 psychological level.
On the upside, the 18-day Exponential Moving Average (EMA) at 1.0728 appears to be the key barrier aligned to the 21-day EMA at the 1.0742 level.
A break above the latter could provide support for the pair to navigate the region around the 23.6% Fibonacci retracement at 1.0772, followed by the 1.0800 psychological level.
The Moving Average Convergence Divergence (MACD) line remains below the centerline but is at the same level as the signal line. This configuration suggests that the momentum in the underlying asset's price is relatively neutral, with neither bullish nor bearish dominance.
However, the momentum in the EUR/USD pair indicates bearish sentiment in the market as the 14-day Relative Strength Index (RSI) remains below the 50 level.
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.
