EUR/USD Price Analysis: Bounces from one-month-low as doji emerges at around 1.0940s
|- EUR/USD falls to 1.0912 but rebounds before breaching 1.0900, trading at 1.0942 with a slight gain of 0.04% on Thursday.
- A potential doji formation shows market indecision; the pair might consolidate within the 1.0900/1.1000 range, with 100-day EMA at 1.0894 as a key support level.
- Resistance lies at 1.0971 (50-day EMA), with further upside targets at 1.1000, 1.1020 (29-day EMA), and 1.1100. Conversely, a breach below the 100-day EMA could lead to further losses toward 1.0833 and 1.0800.
The EUR/USD fell to a one-month-low of 1.0912 but bounced before breaching below the 1.0900 figure and is gaining traction, as the major gains 0.04% on Thursday. Hence, the EUR/USD is trading at 1.0942, about to form a doji, which depicts indecision among buyers and sellers.
EUR/USD Price Analysis: Technical outlook
It should be said the EUR/USD dropped below the 50-day Exponential Moving Average (EMA) at 1.0871, suggesting the pair is accelerating its downtrend, but the 100-day EMA at 1.0894 capped the EUR/USD’s fall to test the July 6 swing low of 1.0833. Despite the fact that the EUR/USD’s scenario is turning bearish, the pair might consolidate within the 1.0900/1.1000 area, as a downslope trendline passes around 1.1000, while the 100-day EMA could cushion the EUR/USD around 1.0900.
However, if EUR/USD extends its losses past the latter, the 100-day EMA around 1.0894 would be tested. A breach of the latter would immediately expose the July 6 low at 1.0833, followed by the 1.0800 figure, ahead of the 200-day EMA.
Conversely, if the EUR/USD reclaims the 50-day EMA at 1.0971, the 1,1000 figure would be up for grabs. Break above would set the stage to test the 29-day EMA at 1.1020, followed by the 1.1100 mark.
Oscillator-wise, the Relative Strength Index (RSI) remains in bearish territory, but its slope is almost turning neutral. The three-day Rate of Change (RoC) portrays a positive divergence, as the RoC aims upward, while EUR/USD’s price action extends its losses. Nevertheless, a doji emerging at around 1.0900 could signal buyers to enter the market.
EUR/USD Price Action – Daily chart
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