EUR/USD Technical Outlook

EnclaveFX Ltd
Feb 08, 2023

It has shown remarkable resilience below the confluence support, which is the 50-day SMA and the lower end of an ascending channel that has been in place for nearly three months. This being said, it seems that oscillators have begun to gain negative momentum on the daily chart, which indicates that we may be headed for further losses in the future. Meanwhile, the 1.0700 mark is likely to act as immediate support ahead of the overnight swing low, around the 1.0670-1.0665 region. As long as spot prices stay below 1.0575-1.0557 support, a bearish breakdown will be confirmed in the near term, which will drag them to the 1.0600 level en route to the 1.0575-1.0570 level of support.

A subsequent move up is more likely to encounter some hurdles near the level of 1.0775, just ahead of the 1.0800 round figure, if it is to continue upwards. There are also resistance levels at 1.0860-1.0860, which, if cleared decisively, will negate any bearish trend in the near term. EUR/USD might then accelerate its momentum towards the 1.0900 mark and test the next relevant barrier near the 1.0930 mark. Bulls may eventually aim to achieve the psychological level of 1.1100.


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