EUR/USD Analysis and market prediction Hello everyone, as we all know the market action discounts everything :)
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The EUR/USD rebounded from a new cycle low and recovered to 1.1461 before soon falling back below 1.1450. The couple is ready to end the week under duress, unable to make a powerful comeback.
The euro is likely to reach its lowest weekly closing against the US dollar since July 2020. It is still under pressure, and the recent rally was viewed as an opportunity for traders to sell EUR/USD.
It seems like the market is trending in a downward channel pattern with no signs of a breakout yet.
Possible Scenario for the market :
The market is trading at 1.14470 with a strong Bearish momentum in a downward channel and it is expected to drop even lower next week, reaching the first support line located at 1.14080 where we might see the Bulls trying to take back control in hopes of driving the market back up. in case the bulls couldn't take control we could be seeing a further drop that will reach the 1.13240 level.
Technical Analysis shows :
1) The market is below the 5 10 20 50 100 and 200 MA and EMA (Strong Bearish sign)
2) The MACD is below the 0 line indicating a Bearish market with a negative crossover between the MACD line and the Signal line.
3) The RSI is at 34.40 showing weakness in the market and getting closer to the oversold zone.
Support & Resistance points :
support Resistance
1) 1.14080 1) 1.16170
2) 1.13240 2) 1.17220
3) 1.11769 3) 1.18310
Fundamental point of view :
Economic data in the US showed the US University of Michigan Consumer Sentiment index dropped unexpectedly to the lowest level in 10 years at 66.8 against expectations of an increase to 72.4. “US consumer confidence is being threatened by the rising cost of living. Thankfully the relationship between spending and sentiment has been weak for a number of years and the strong underlying economic position means spending will continue to grow. Meanwhile, people continue to quit their jobs in record numbers as pay rates rise,
The numbers triggered a decline in US yields and weighed on the greenback. The US Dollar Index turned negative for the day, retreating from one-year highs. The EUR/USD failed to benefit strongly from the weaker greenback, and it remains near weekly lows, showing that the bearish pressure persists
This is my personal opinion done with technical analysis of the market price and research online from Fundamental Analysts and News for The Fundamental point of view, not financial advice.
If you have any questions please ask and have a great day !!
Thank you for reading.
