EUR/USD Pulls Back but 50-Day SMA Curbs Decline

Published 07/03/2023, 05:53 AM
EUR/USD
EURUSD has experienced a downside correction after its latest advance got rejected at the 1.1011 territory on June 22.  Even though the pair temporarily bounced off the congested region that includes its 50-day simple moving average (SMA) and the upper boundary of the Ichimoku cloud, the bears continue to apply downside pressure.

The momentum indicators currently suggest that the positive momentum is waning. Specifically, the MACD has dropped below its red signal line but remains positive, while the stochastic oscillator is descending after posting a bearish cross.

Should the price pierce through its 50-day SMA, the recent support of 1.0834 could act as the first line of defense. A violation of that zone could turn the attention to 1.0790 before the May low of 1.0633 gets tested. Failing to halt there, the pair may retreat towards the March double-bottom region of 1.0515.

On the flipside, if the bulls manage to regain control, the price could initially face the recent rejection region of 1.1011. Clearing this level, the pair could advance towards the February peak of 1.1032. A break above that zone could open the door for the 14-month high of 1.1094.

In brief, EURUSD’s latest pullback came to a halt at the 50-day SMA, but the momentum indicators are currently tilted to the bearish side. Therefore, a potential break below this crucial technical zone could trigger a significant decline

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.