Technical Analysis – EURUSD gets rejected from near 1.0665
October 31, 2023 4:25 pm
EURUSD bears jump into the action from near 1.0665 again
Short-term oscillators point to no clear directional momentum
But as long as the pair remains below 1.0665, the slide could continue
EURUSD traded higher on Tuesday, extending Monday’s recovery, but the advance was stopped again near the key resistance territory of 1.0665, slightly above the 50-day exponential moving average (EMA), with the price now trading below its opening level. As long as EURUSD remains below the key barrier of 1.0665, the chances for another leg south are decent.
Both the MACD and the RSI are lying near their equilibrium levels indicating lack of directional momentum. The MACD is slightly below zero but above its trigger line and is pointing up, while the RSI, although fractionally above 50, has shifted down.
If the bears remain in control, EURUSD could fall to the 1.0445 territory, marked by the low of October 3. A break below that zone would confirm a lower low and perhaps signal the continuation of the prevailing downtrend.
On the upside, even if the pair recovers and breaks above the 1.0665 hurdle, the outlook will not turn to positive, as this will only confirm the pair’s return within the sideways range that contained most of the price action between January and September. The move confirming that the bulls have stolen all the bears’ swords may be a decisive break above the upper bound of the range at around 1.1070.
To sum up, EURUSD got rejected again from near the key resistance zone of 1.0665, a technical move suggesting that the short-term picture remains cautiously negative. That said, the continuation of the prevailing downtrend will likely be confirmed upon a dip below 1.0445.
EURUSD bears jump into the action from near 1.0665 again
Short-term oscillators point to no clear directional momentum
But as long as the pair remains below 1.0665, the slide could continue
EURUSD traded higher on Tuesday, extending Monday’s recovery, but the advance was stopped again near the key resistance territory of 1.0665, slightly above the 50-day exponential moving average (EMA), with the price now trading below its opening level. As long as EURUSD remains below the key barrier of 1.0665, the chances for another leg south are decent.
Both the MACD and the RSI are lying near their equilibrium levels indicating lack of directional momentum. The MACD is slightly below zero but above its trigger line and is pointing up, while the RSI, although fractionally above 50, has shifted down.
If the bears remain in control, EURUSD could fall to the 1.0445 territory, marked by the low of October 3. A break below that zone would confirm a lower low and perhaps signal the continuation of the prevailing downtrend.
On the upside, even if the pair recovers and breaks above the 1.0665 hurdle, the outlook will not turn to positive, as this will only confirm the pair’s return within the sideways range that contained most of the price action between January and September. The move confirming that the bulls have stolen all the bears’ swords may be a decisive break above the upper bound of the range at around 1.1070.
To sum up, EURUSD got rejected again from near the key resistance zone of 1.0665, a technical move suggesting that the short-term picture remains cautiously negative. That said, the continuation of the prevailing downtrend will likely be confirmed upon a dip below 1.0445.
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