EUR/USD Mid-Day Trading Perspective

As the trading day unfolds, the EUR/USD currency pair continues to trend downward from its recent high of 1.1016, maintaining a bearish bias throughout the day. Traders are eyeing the 55-day Exponential Moving Average (EMA), currently at 1.0770, which serves as the next significant benchmark. A decisive dip below this level could steer the pair towards the 1.0447 support zone.

Key Resistance and Support Levels

Determined by daily pivots, the support and resistance levels for the session are marked at 1.0795 (S1), 1.0845 (P), and 1.0886 (R1). A surge above the minor resistance point of 1.0912 might neutralize the intraday bias. If the pair advances past the 1.1016 mark, it could signal a continuation of the upward trajectory, potentially challenging the previous high of 1.1274.

Longer Term Market View

In a broader context, the price movements from the 1.1274 high are interpreted as a consolidation phase following a significant rally from the 2022 low of 0.9534. The upsurge from 1.0447 is postulated to be part of this corrective structure. While there's room for some bullish momentum, it is anticipated that gains will be capped by the 1.1274 level, which could prompt the commencement of a downward phase. Conversely, a confirmed break below the 55-day EMA may suggest that the next leg of the correction has already begun, targeting the 1.0447 support or potentially lower.

EURUSD, Forex, Trading