- The confluence of the Ascending Triangle formation and Inverted Flag has strengthened the greenback bulls.
- Declining 20-EMA at 1.0540 adds to the downside filters.
- A bearish range shift by the RSI (14) is indicating more weakness ahead.
The EUR/USD pair is juggling in a minor range of 1.0518-1.0531 in the early Tokyo session. Earlier, the asset witnessed a steep fall after failing to sustain above the round-level resistance of 1.0600 on Tuesday.
On a broader note, the asset is auctioning in an Ascending Triangle chart pattern whose upward sloping trendline is placed from 1.0444 while the horizontal resistance is plotted from the previous week’s high at 1.0606. Also, the asset is forming an Inverted Flag pattern that signals a consolidation phase after a downside move. The confluence of the Ascending Triangle formation and Inverted Flag on the hourly scale is bolstering the odds of a downside break of the asset.
The declining 20-period Exponential Moving Average (EMA) at 1.0540 is indicting more weakness in the counter.
Also, the Relative Strength Index (RSI) (14) has shifted into the bearish range of 20.00-40.00, which adds to the downside filters.
The greenback bulls could strengthen further if the asset drops below the psychological support of 1.0500. An occurrence of the same will drag the asset towards June 22 low at 1.0469. A slippage below June 22 low will expose the asset to more downside levels for the June 17 low at 1.0444.
On the flip side, a decisive move above Monday’s high at 1.0615 will drive the asset towards May 25 high at 1.0642, followed by May 27 low at 1.0697.
EUR/USD hourly chart
-637920614010345217.png)
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD nears 1.1200 after US PCE inflation data
EUR/USD approaches 1.1200 following generally softer-than-anticipated US inflation-related figures. The pair lacks momentum amid tepid European data undermining demand for the Euro. Still, optimism weighs on the USD.
GBP/USD battles the 1.3400 level for a definitive bullish breakout
GBP/USD advances modestly beyond the 1.3400 level after US PCE inflation data showed price pressures continued to recede in August. Sterling Pound aims for fresh yearly highs beyond the 1.3433 peak posted earlier this week.
Gold hovers around $2,670 as US Dollar resumes decline
Gold price retains its bullish bias near fresh record highs, as demand for the US Dollar remains subdued following US PCE inflation figures. The strong momentum around stocks limits demand for the safe-haven metal.
Week ahead – NFP on tap amid bets of another bold Fed rate cut
Investors see decent chance of another 50bps cut in November. Fed speakers, ISM PMIs and NFP to shape rate cut bets. Eurozone CPI data awaited amid bets for more ECB cuts. China PMIs and BoJ Summary of Opinions also on tap.
RBA widely expected to keep key interest rate unchanged amid persisting price pressures
The Reserve Bank of Australia is likely to continue bucking the trend adopted by major central banks of the dovish policy pivot, opting to maintain the policy for the seventh consecutive meeting on Tuesday.
Five best Forex brokers in 2024
VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals.