EUR/USD Price Analysis: Weakness seen as temporary

EUR/USD once again lost momentum in the upper-1.2100s.
Further downside should falter around 1.2000.

Pablo Piovano FXStreet

EUR/USD recedes from multi-day highs and slips back below the key 1.2100 support on Wednesday.

The pair now flirts with a Fibo level in the 1.2060/65 band. A breach of this area could lead to a probable visit to the psychological 1.2000 level, which is expected to hold the initial test in the near-term.

If bulls return to the markets, the recent tops around 1.2170 line up as an interim hurdle. This area is also reinforced by another Fibo retracement. Further up comes in the weekly highs near 1.2190 (January 22). The selling pressure should alleviate above the latter, opening the door to a probable visit to the YTD highs in the 1.2350 zone.

On the broader picture, the constructive stance in EUR/USD remains unchanged while above the critical 200-day SMA, today at 1.1738.

Looking at the monthly chart, the (solid) breakout of the 2008-2020 line is a big bullish event and should underpin the continuation of the current trend in the longer run.

EUR/USD daily chart

EUR/USD

Overview
Today last price	1.2062
Today Daily Change	50
Today Daily Change %	-0.41
Today daily open	1.2112

Trends
Daily SMA20	1.2102
Daily SMA50	1.2157
Daily SMA100	1.1997
Daily SMA200	1.1747

Levels
Previous Daily High	1.217
Previous Daily Low	1.2095
Previous Weekly High	1.215
Previous Weekly Low	1.202
Previous Monthly High	1.235
Previous Monthly Low	1.2054
Daily Fibonacci 38.2%	1.2123
Daily Fibonacci 61.8%	1.2141
Daily Pivot Point S1	1.2081
Daily Pivot Point S2	1.2051
Daily Pivot Point S3	1.2007
Daily Pivot Point R1	1.2156
Daily Pivot Point R2	1.22
Daily Pivot Point R3	1.223

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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