Technical Analysis – EURUSD flirts with 1.0500 after 2-year low
- EURUSD recovers from 1.0330
- 50- and 200-day SMA post bearish cross
- Stochastics head up; MACD still in downside move
EURUSD is recouping some of the significant losses that were posted in the preceding three weeks after the plunge to a fresh two-year low of 1.0330.
Currently, the pair is flirting with the 1.0500 psychological mark, with the stochastic confirmation of an upside retracement. The indicator is posting a bullish crossover within its %K and %D lines; however, the MACD is still losing momentum beneath its trigger and zero lines. Moreover, the 50- and the 200-day simple moving averages (SMAs) created a negative cross, mirroring the downward wave from 1.1215.
If the market successfully overcomes the immediate resistance at 1.0500, then it may rest near the 1.0600 round number ahead of the 1.0665 barrier, which holds near the 20-day SMA.
Alternatively, steeper decreases could open the way for a retest of the latest low at 1.0330 ahead of November’s 2022 trough at 1.0220.
Overall, since the end of September, EURUSD has been strongly bearish, and further downside pressure does not rule out the parity level.
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