Market news
06.03.2023, 04:43

EUR/USD Price Analysis: 100-SMA probes buyers amid sluggish start to the key week

  • EUR/USD picks up bids to print mild gains while extending the previous weekly recovery.
  • 100-SMA, one-month-old descending resistance line restrict immediate upside.
  • Sluggish MACD signals join sustained trading below two-month-long horizontal hurdle, 200-SMA to keep bears hopeful.

EUR/USD rebound pokes the 100-SMA hurdle around 1.0650 heading into Monday’s European session.

The major currency pair recovered from a two-month low in the last week on broad US Dollar weakness, as well as the hawkish concerns about the European Central Bank (ECB). However, the cautious mood ahead of the top-tier catalysts from the US and Europe seems to test the momentum traders of late.

Also read: EUR/USD grinds lower towards 1.0600 ahead of Eurozone Retail Sales, focus on Fed Chair Powell, US NFP

That said, a one-month-old descending resistance line, near 1.0660 by the press time, acts as an extra filter towards the north, apart from the immediate 100-SMA hurdle of 1.0650.

It’s worth noting that the EUR/USD pair’s run-up beyond the 1.0650 hurdle isn’t an open invitation for the quote’s rally as the 200-SMA and a two-month-long horizontal resistance area could check the pair’s further upside, respectively near 1.0745 and 1.0760-65.

Should the EUR/USD pair portray another defeat from the key SMA hurdle, a one-week-old ascending support line near 1.0600 will be crucial to watch as it holds the gate for the pair’s slump toward early 2023 low near 1.0480. Adding strength to the 1.0480 support is November 2022’s top.

In a case where EUR/USD drops below 1.0480, the late November low near 1.0290 and the monthly bottom of 1.0222 will be in focus.

Overall, EUR/USD is likely to recover but the upside room remains limited.

EUR/USD: Four-hour chart

Trend: Limited upside expected

 

© 2000-2024. All rights reserved.

This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.

Bank
transfers
Feedback
Live Chat E-mail
Up
Choose your language / location