Technical Analysis – EURUSD consolidates after decline pauses
April 22, 2024 8:27 am
EURUSD drops to a fresh 5-month low before paring some losses
Oscillators suggest that risks remain tilted to the downside
EURUSD came under severe selling pressure in the aftermath of a hotter-than-expected inflation report on April 10, violating its 2024 low of 1.0693. Although the pair managed to find its footing at the five-month bottom of 1.0600, it has so far failed to stage a significant recovery.
Should downside pressures persist, the pair might revisit its recent five-month low of 1.0600. Sliding beneath that floor, the price could test the October-November support of 1.0516. Even lower, the September support of 1.0487 may provide downside protection.
On the flipside, bullish actions might meet initial resistance at the crucial 2024 support zones of 1.0693 and 1.0722. Conquering this barricade, the bulls could attack 1.0795, a region that acted both as support and resistance throughout 2024. A violation of that hurdle could set the stage for the September high of 1.0884.
In brief, EURUSD has been rangebound in the last few sessions, but the momentum indicators are suggesting that the bears remain in control. Meanwhile, the completion of a death cross between its 50- and 200-day simple moving averages (SMAs) could potentially trigger a new round of weakness.
EURUSD drops to a fresh 5-month low before paring some losses
Oscillators suggest that risks remain tilted to the downside
EURUSD came under severe selling pressure in the aftermath of a hotter-than-expected inflation report on April 10, violating its 2024 low of 1.0693. Although the pair managed to find its footing at the five-month bottom of 1.0600, it has so far failed to stage a significant recovery.
Should downside pressures persist, the pair might revisit its recent five-month low of 1.0600. Sliding beneath that floor, the price could test the October-November support of 1.0516. Even lower, the September support of 1.0487 may provide downside protection.
On the flipside, bullish actions might meet initial resistance at the crucial 2024 support zones of 1.0693 and 1.0722. Conquering this barricade, the bulls could attack 1.0795, a region that acted both as support and resistance throughout 2024. A violation of that hurdle could set the stage for the September high of 1.0884.
In brief, EURUSD has been rangebound in the last few sessions, but the momentum indicators are suggesting that the bears remain in control. Meanwhile, the completion of a death cross between its 50- and 200-day simple moving averages (SMAs) could potentially trigger a new round of weakness.
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