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.

Akhtar Faruqui FXStreet

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

EUR/USD: additional important levels

Overview
Today last price	1.0635
Today Daily Change	-0.0025
Today Daily Change %	-0.23
Today daily open	1.066

Trends
Daily SMA20	1.0753
Daily SMA50	1.0908
Daily SMA100	1.0885
Daily SMA200	1.0829

Levels
Previous Daily High	1.0737
Previous Daily Low	1.065
Previous Weekly High	1.0769
Previous Weekly Low	1.0632
Previous Monthly High	1.1065
Previous Monthly Low	1.0766
Daily Fibonacci 38.2%	1.0683
Daily Fibonacci 61.8%	1.0704
Daily Pivot Point S1	1.0628
Daily Pivot Point S2	1.0596
Daily Pivot Point S3	1.0541
Daily Pivot Point R1	1.0715
Daily Pivot Point R2	1.0769
Daily Pivot Point R3	1.0802

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.

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