EUR/USD Technical Analysis | Forexlive
On the daily chart below, we can
see that the price has run down to the trendline and the support at the 1.0700 handle before
bouncing.
The 1.1000 handle held as the NFP report surprised everyone with a
huge beat to the expectations and the ISM
Services PMI beat added more fuel to the sell off. A pullback
now may be due ahead of the CPI report next week.
In case the price falls further
and breaks below the trendline and the support at 1.07, we may see more
downside and the price falling to the 1.05 handle. We can also see the divergence between the whole move up in
price since the end of November 2022 and the MACD.
In case the price breaks below
the trendline, we should see a bigger correction towards the 1.02 handle, which
is the bottom of the entire divergent move up.
On the 4 hour chart below, we can
see more clearly the price bouncing off of the support zone and the trendline
at the 1.07 handle. The price may pullback to the 1.08 handle where we have the
38.2% Fibonacci
retracement level with a swing level as resistance. That’s a
nice confluence where sellers may start to pile
up. There’s nothing today on the economic data side, so the technical should
lead.
On the 1 hour chart below, we can
see that the price has been diverging with the MACD since the 1.08 price level.
This signals a loss of selling momentum and in fact the price bounced right at
the support and the trendline.
Generally, the price pulls back
to the top of the divergent move, so that would be in the 1.08 price area
where, as mentioned above, we also have the Fibonacci and the swing resistance
levels. If the price breaks above the 1.08 handle, then we may see a bigger
pullback toward the 1.09 handle where we have the 61.8% Fibonacci level.