Technical Analysis for EURUSD for 5th July 2023
Euro Edging Lower, Will $1.0850 Hold?
Past Performance of EURUSD
Euro prices are down, volatile, and without clear direction in the short term. Overall, buyers stand a chance. However, there must be clean breakouts in the days ahead for a clear trend definition. As it is, there must be a conclusive close above $1.1000 for buyers to take charge. Conversely, with the euro edging lower, losses below $1.0850 will cancel the current bullish outlook.
EURUSD Technical Analysis
The path of least resistance is northwards, from the formation in the daily chart. The failure of buyers to force prices higher, as long as bulls maintain the euro above $1.0850, could offer an opportunity for aggressive traders to ramp on longs on dips. Still, considering the euro’s volatile nature and buyers’ failure to soak in the bear momentum successfully, any drop below $1.0850 and June 23 lows may trigger a sharp sell-off. In that case, the immediate target will be $1.0800 and $1.0660. On the other hand, this will change once buyers reverse recent losses and power above $1.1000, opening up entries for an eventual ride to $1.1100.
What to Expect from EURUSD
The euro is weak and bearish at spot rates. Aggressive bulls may look to align with the buyers of June 15. Conservative traders, on the other hand, should wait for a clear trend definition above/below medium-term reaction levels.
Resistance level to watch: $1.1000
Support level to watch: $1.0850
Disclaimer: Opinions expressed are not investment advice. Do your research.
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