EUR/USD Technical Overview
After the announcement of the new rate, EUR/USD explored aggressively lower levels. The price action in H1 was pushed down by the downside pressure, which left the $1.11 level unchallenged. This led to a psychological floor around $1.10. Most people would agree that the chart for H1 is somewhat a mess. While we are rebounding off $1.10, there is no clear trend in the near term. (Longer term it is evident we have been moving higher since September 2022). H1 resistance is $1.1040. A break from here could take us to the $1.11 area.
The price action in the larger picture shows that the upward momentum has diminished significantly since the pair retested on the 24 March the upper edge 50-day simple average. The price structure shows a lack of momentum. Highs have been fading, and the Relative Strength Index is nearing the overbought line and threatening the 50.00 centreline. On the daily timeframe to the upside, $1.1138 is a resistance level that needs attention. If sellers take a stand due to the lack of support we could fall as low as the 50-day…
