EUR/USD Poised to Retake $1.07 to the Downside
US hours, thanks to the US Fed Chair Powell’s responses at the Economic Club of Washington DC, witnessed risk assets initially catch a bid. Procyclical currencies such as the Australian dollar, the New Zealand dollar and the Canadian dollar were underpinned against their US counterpart.
Technically speaking, though, this changes little in terms of the higher timeframes and despite the recent bullish episode, bears are in the driving seat.
Attention remains on support at $1.0602 from the daily timeframe. In light of the trendline support breach earlier this week on the daily (extended from the low $0.9730), action offering an early indication of a downtrend emerging, as well as the weekly timeframe’s price action rejecting Quasimodo support-turned resistance at $1.0888 in the shape of a shooting star, and the daily chart’s Relative Strength Index (RSI) nudging beneath its 50.00 centreline (negative momentum), $1.0602 is a reasonable downside objective.
Across the page on the H1 timeframe, overhead resistance calls for attention at $1.0774, a Quasimodo support-turned resistance level. This level and the $1.08 figure offer resistance to work with here, albeit current price forming a top just ahead of $1.0774 at the moment opens the door back to $1.07 and pre-Powell speech levels.
Therefore, chart studies indicate this is a sellers’ market and a $1.07 breach could pull in fresh breakout selling opportunities towards H1 Quasimodo support from $1.0667, followed by H1 support at $1.0635 and ultimately $1.06 which aligns with daily support mentioned above at $1.0602.
Technically speaking, though, this changes little in terms of the higher timeframes and despite the recent bullish episode, bears are in the driving seat.
Attention remains on support at $1.0602 from the daily timeframe. In light of the trendline support breach earlier this week on the daily (extended from the low $0.9730), action offering an early indication of a downtrend emerging, as well as the weekly timeframe’s price action rejecting Quasimodo support-turned resistance at $1.0888 in the shape of a shooting star, and the daily chart’s Relative Strength Index (RSI) nudging beneath its 50.00 centreline (negative momentum), $1.0602 is a reasonable downside objective.
Across the page on the H1 timeframe, overhead resistance calls for attention at $1.0774, a Quasimodo support-turned resistance level. This level and the $1.08 figure offer resistance to work with here, albeit current price forming a top just ahead of $1.0774 at the moment opens the door back to $1.07 and pre-Powell speech levels.
Therefore, chart studies indicate this is a sellers’ market and a $1.07 breach could pull in fresh breakout selling opportunities towards H1 Quasimodo support from $1.0667, followed by H1 support at $1.0635 and ultimately $1.06 which aligns with daily support mentioned above at $1.0602.
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