Technical Analysis for EURUSD for 2nd June 2023
Euro Shakes Off Bears as it Bottoms Up, Bulls Targeting $1.0850
Past Performance of EURUSD
There is a welcomed revival in the euro following a worrying 3.6% dip from April highs. The long lower wick of May 31 was followed by a bullish engulfing bar on June 1, reinvigorating buyers. With prices above $1.0760, there is room for further gains in the immediate term towards $1.0850.
EURUSD Technical Analysis
Buyers are confident of the current formation, reading from the EUR price action in the daily chart. The June 1 bar is wide-ranging with decent volumes, suggesting participation. With today’s fundamental event, buyers may add to their longs, extending gains and marking the euro bottoms. As it is, this could trigger more demand as bulls from March and April resume. Notice that the euro has support at the 78.6% Fibonacci retracement level of the March to April 2023 trade range. As it is, euro, if the buying pressure is sustained, could float back to $1.1100 or April highs.
What to Expect from EURUSD
The euro could be in the early stage of a refreshing reversal if there is a follow-through of yesterday’s gains. In that case, euro traders can double down on every attempt lower above $1.0630 and $1.0760, targeting $1.0850 in the medium term.
Resistance level to watch: $1.0850
Support level to watch: $1.0630
Disclaimer: Opinions expressed are not investment advice. Do your research.
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