EUR/USD Price Analysis: Bears appear at the 50-DMA, but it remains around 1.1320s

• The euro keeps afloat above the 1.1300 figure, after reaching a daily low at 1.1284.
• High US Treasury yields, and omicron variant woes, spurred demand for safe-haven peers but the euro.
• The EUR/USD formed an ascending wedge that targets the 1.1090-1.1100 region.

The shared currency slides on Monday, trimming  Friday’s gains down due to high US Treasury yields a headwind for the EUR/USD, while some companies are warning about the impact of the omicron coronavirus variant. At the time of writing, the EUR/USD is trading at 1.1325.

EUR/USD Price Forecast: Technical outlook

In the overnight session, the pair faced strong resistance at the 50-day moving average around 1.1346, though it was trading above it, slumped from 1.1360s to 1.1284 as the market sentiment worsened. The EUR/USD broke crucial support levels on its way south, like the daily pivot at 1.1338 and the S1 daily pivot at 1.1311.

From the EUR/USD daily chart perspective, the EUR/USD formed an ascending wedge, which has bearish implications, that in the event of breaking downwards, would target  1.1090, though it would face some hurdles on the way down.

The EUR/USD’s first support level is the January 4 daily low at 1.1272. A breach of the latter would expose December 15, 2021, pivot low at 1.1222, followed by the 2021 yearly low at 1.1186, and then the ascending wedge target around the 1.1090-1.1100 area.

On the flip side, to negate the EUR/USD’s downward bias, a clear break above December’s 31, 2021, cycle high at 1.1387 would open the door towards 1.1400, followed by a re-test of a nine-month-old downslope trendline around the 1.1425-50 area.