Technical Analysis for EURUSD for 6th June 2023
Euro Rejects Sellers at $1.0660, is the Bear Run Over?
Past Performance of EURUSD
The euro remains volatile when writing, shaking off bears, and rejecting attempts for lower lows. With the June 5 bar closing with a long lower wick, it could suggest that the euro found support in the late European and NY trading sessions. The immediate support and sell trigger lines remain at $1.0660 and $1.0600.
EURUSD Technical Analysis
Overall, sellers have the upper hand. However, looking at the daily chart, prices are moving horizontally. Notably, the rejection of lower prices, clear in lower time frames, could form the base of a leg up towards $1.0850. Already, there is evidence of strength in the daily chart as the Asian session started off a strong footing. Still, before the shift turns bullish, traders should watch how prices react at the top of the current range at around $1.0780, marking June 2 high. A conclusive, high-volume break out propelling the euro to new highs may trigger demand, setting the base for a leg up towards $1.1100 in the medium term.
What to Expect from EURUSD
Euro prices remain in a broader consolidation. Even so, the leg higher and rejection of lower prices on June 5 may signal the end of the bear run. Therefore, conservative traders can wait for a clear breakout above $1.0780 before buying on dips targeting April highs. Any dump below $1.0660 and later $1.0600 cancels this preview and would fuel a sell-off towards $1.0500.
Resistance level to watch: $1.0780
Support level to watch: $1.0660
Disclaimer: Opinions expressed are not investment advice. Do your research.
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