Daily Technical and Trade Outlook – EUR/USD

Daily EUR/USD Technical Outlook

Last updated at April 28, 2022 00:35GMT.

Daily trend chart

Down

Daily indicators

Fall

21 HR EMA

1.0577

55 HR EMA

1.0632

Trend hourly chart

Down

Time indicators

Rising fm o/s

13 HR RSI

35

IMD 2 p.m.

-ve

Daily analysis

The b4 consolidation downtrend resumes.

Resistance

1.0654 - Wednesday's high.
1.0635 - Wednesday's Asian low (now resolved).
1.0586 - Wednesday morning European low (now resolved).

Support

1.0515 - Wednesday's 5-year low.
1.0500 - Psychological handle.
1.0471 - 2.236 ext. from 1.0936-1.0771 fm 1.0840.

EUR/USD - 1.0546... The euro remained weaker in Asia on Wednesday, briefly penetrating the 2020 low of 1.0637 to 1.0635. Despite rallying to 1.0654, price fell steadily in Europe in New York session to 1.0515 b4, rebounding to 1.0572.

Overall, despite the 2017 Euro LT rising near the 14-year low of 1.0341 to a fresh 3-year high of 1.2555 in mid-February 2018, the decline to a more Near 3-year low of 1.0637 (Mar 2020) signals that the correction has ended. 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. The breakout of the Euro at 1.1705n and then weakness at a 22-month low at 1.0807 in early March would put pressure on the price towards the 2020 low at 1.06 37 (March). Last week's weakness at 1.0758 would put pressure on price towards 1.0571, however, “bullish convergences� on daily indicators may limit weakness to 1.0460/70n and result in a minor correction. On the upside, only abv 1.0938 is likely to retrace. twd 1.0184.

Today's resumption of the Euro downtrend to a 5-year low at 1.0515 suggests that the price will lose further ground in the coming days, reckon that 1.0470/75 may hold in the early tests and provide a much-needed retracement. A daily close from 1.0586 could lead to a stronger retracement at 1.0654 b4, with the prospect of further declines next week.