Technical Analysis – EURUSD squeezed between key barriers
June 6, 2023 2:31 pm
EURUSD got rejected from the resistance trendline that comes from May 2021, edging lower to find support near the 200-day exponential moving average (EMA). The 23.6% Fibonacci retracement of the 0.9535-1.1094 upleg came to further limit bullish actions around 1.0722 this week.
The price is trading slightly above the lower Bollinger band, while the RSI is a short distance above its 30 oversold level, suggesting that downside forces may persist a little bit before the next bullish rotation takes place.
If May’s low of 1.0636 proves fragile too, the bears may revisit the February-March base of 1.0500. A break lower would downgrade the short- and medium-term outlook to negative, prompting another quick decline towards the 1.0400 psychological mark and then down to the 50% Fibonacci mark of 1.0314.
On the upside, the space between 1.0780 and 1.0850, which is formed by two trendlines, could delay a continuation towards the crucial resistance of 1.1050-1.1100. If the September-May uptrend resumes above the latter, the next obstacle could be found within the 1.1185-1.1220 constraining zone.
In brief, although EURUSD is trading around a former support zone, the technical picture suggests that the ongoing bearish wave has not found a bottom yet.
EURUSD got rejected from the resistance trendline that comes from May 2021, edging lower to find support near the 200-day exponential moving average (EMA). The 23.6% Fibonacci retracement of the 0.9535-1.1094 upleg came to further limit bullish actions around 1.0722 this week.
The price is trading slightly above the lower Bollinger band, while the RSI is a short distance above its 30 oversold level, suggesting that downside forces may persist a little bit before the next bullish rotation takes place.
If May’s low of 1.0636 proves fragile too, the bears may revisit the February-March base of 1.0500. A break lower would downgrade the short- and medium-term outlook to negative, prompting another quick decline towards the 1.0400 psychological mark and then down to the 50% Fibonacci mark of 1.0314.
On the upside, the space between 1.0780 and 1.0850, which is formed by two trendlines, could delay a continuation towards the crucial resistance of 1.1050-1.1100. If the September-May uptrend resumes above the latter, the next obstacle could be found within the 1.1185-1.1220 constraining zone.
In brief, although EURUSD is trading around a former support zone, the technical picture suggests that the ongoing bearish wave has not found a bottom yet.
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