EUR/USD Slips Amid Persistent Downward Bias
The EUR/USD is still struggling, and the pair is sustaining an upward bias since the decline from 1.1213 has gained momentum.
The decline is the third phase of a pattern correction, which began at 1.1274. Market analysts are monitoring the 61.8% retracement level in that 1.0447 up to 1.1213 interval, currently at 1.0740. If the pair crosses that level, it may indicate a further downward trend.
On the other hand, If EUR/USD can find a way to move over the minor resistance level of 1.0953, It may be able to help neutralize the intraday bias for a short time, which could lead to a phase of consolidation before potentially returning to its downward trend.
In the broader situation, the break at the 1.1274 levels earlier in the year suggests that the more prominent correctional pattern that emerged from the high in 2023 remains unfinished.
The current drop from 1.1213 could indicate a second downward trend and an extended break of the 55-weekly EMA sitting at 1.0877–validating the bearish view.
A more significant decline could cause the pair to reach the 1.0447 support mark. The downside must be limited with the 50 retracement threshold, which is 0.9534 (2022 the low) to 1.1274 and is at 1.0404.
Also Read: Forex Update: EUR/USD, GBP/USD, AUD/USD, and More Market Movements
AUD/USD Resumes Downtrend After Temporary Low Break
The AUD/USD currency pair has resumed its decline, breaking the level of 0.6701. The bias in the intraday has been shifted to the upside. The next target is the 0.6621 support threshold. A strong break at this level could be the perfect opportunity for a further decline towards that 0.6348 area of support.
If the pair can break above the minor resistance zone at 0.6758, the intraday bias could revert to neutral; however, the bearish tendency is generally unaffected for the time being.
From a longer-term standpoint, looking at the longer-term, price action that has occurred that has occurred since the low of 2022 of 0.6169 is seen as an intermediate-term correctional pattern. The upward move from 0.6269 is the third part of the pattern.
If the AUD/USD price breaks the 100% projection of 0.6269 to 0.6870 from 0.6340 at 0.6941, The next target is the 138.2% projection of 0.7179.
Suppose the pair falls beneath the 0.6621 support level. In that case, the upward trend from 0.6269 is already over, triggering a more significant decline in that 0.6269/0.6348 resistance zone.
Also Read: Forex Update: Volatility Continues Across Major Currency Pairs
The views and analysis expressed by SMJ (Stock Market Journal) are based on current market trends and data available at the time of writing. Forex trading involves substantial risk and may not be suitable for all investors. Past performance is not indicative of future results. Readers are encouraged to seek independent financial advice before making any investment decisions. SMJ is not liable for any losses or damages arising from the use of this information.
