breaking news EURUSD Technical Analysis | Forexlive
On the daily chart below, we can see that the downtrend remains strong on the EURUSD pair. Multiple failures to clear the 1.1033 high, coupled with stronger than expected US data and a hawkish revision in interest rate expectations, led to a strong sell-off. Double top at 1.1033 high may take us back to support at 1.0533 which is also the neckline of the pattern.
In such a scenario, EUR/USD would wipe out the entire post-collapse SVB rally, which we have seen in other markets as well. The divergence between the two tops with the MACD also strengthens the case for a return to the 1.0533 level.
On the 4-hour chart below, we can see how the EURUSD traded lower in a declining channel with clear swing highs and lows. The price has now reached the first downside target in the form of the bottom of the previous diverging uptrend channel. We should see a bounce at this level as the price has diverged with the MACD falling directly into this support. This should be a signal that the bearish momentum is waning, and we could see a pullback before next fall.
On the 1-hour chart below, we can see that price recently bounced off the lower channel boundary to trade higher within the upper channel boundary. The 50% Fibonacci retracement level blocked the rally and after a bit of consolidation EURUSD broke lower, retested support turned resistance and continued lower.
Buyers should now rely on 1.0710 support with defined risk just below and target 1.0760 resistance. The sellers, on the other hand, will want to see the price break through the support to target the 1.0533 level, but we should also see them relying on the resistance at 1.0760 for a better setup of risk to reward.