Daily technical and business insights

Daily EUR/USD Technical Outlook

Last updated 05 May 2022 00:06GMT.

Daily trend chart

Down

Daily indicators

Rising fm o/s

21 HR EMA

1.0574

55 HR EMA

1.0549

Trend hourly chart

Short term

Time indicators

Overbought

13 HR RSI

69

IMD 2 p.m.

+ve

Daily analysis

Consolidation b4 another rise.

Resistance

1.0738 - Last Tuesday's high.
1.0654 - Last Wednesday's high.
1.0631 - Wednesday's high.

Support

1.0592 - Last Friday high (now sup).
1.0564 - Wednesday's European high (now sup).
1.0507 - Wednesday's low.

EUR/USD - 1.0625... Although the Euro wobbled unsteadily in Europe following the stance adjustment ahead of the Fed's rate decision, the price fell to 1.0512 after the rise in expected rate of 50 basis points from the Fed, but then jumped to 1.0631 on short cover.

Overall, despite the Euro's long-term rise in 2017 from near a 14-year low of 1.0341 to a new 3-year high of 1.2555 in mid-February 2018, the decline to a nearly 3-year low of 1.0637 (March 2020) signals that the correction is over . Although the Euro staged a rally towards a nearly 33-month high of 1.2349 at the start of January 2021, the subsequent sell-off at 1.1705 (March) signals that the top has been reached. Euro breakout of 1.1705 n then weakness to 22 month low of 1.0807 in early March n last week break of 2020 low at 1.0637 37 (March) would exert a Price pressure towards the major sup at the 2017 low at 1.0341 (January), on the sold readings on the daily indicators would hold the price psychological "parity" grip. On the upside, only abv 1.0758 risks a stronger retracement towards 1.0936.

Today the Euro's rally around 1.0592 res to 1.0631 confirms that the recent downtrend has made noise. low at April 5-year low at 1.0472, however o/bot readings on hourly oscillators would prevent gain strg abv 1.0654 n estimates 1.0685 would cap on the upside. A daily close below 1.0592 signals a recovery complete, 1.0507/12 later.