Title: EUR/USD Mid-Day Technical Outlook – June 10, 2024
Source: ActionForex.com
Original Author: ActionForex Technical Analysis Team
Overview
The EUR/USD extended its recent upward trend today, maintaining steady gains during the mid-European session. The pair approached the resistance zone around 1.0797, supported by momentum that suggests buyers still control short-term direction. Market participants are focused on upcoming inflation data and central bank commentary, which may impact further movement.
Short-term Technical Analysis
– EUR/USD is trading with a modest bullish tone going into the US session, currently holding close to the intraday high near 1.0790.
– The immediate outlook remains positive due to the sustained recovery from the 1.0667 support level reached earlier this month.
– Key resistance lies at 1.0797 (previous high), with further upward potential if this level is broken decisively.
– The 4-hour chart indicates a bullish crossover in short-term moving averages, reinforcing positive sentiment.
Let’s break down key technical levels and patterns informing today’s mid-day outlook.
Daily Chart Structure
– The daily chart shows a clear upward recovery from the June 3 swing low of 1.0667.
– Despite a minor pullback, the pair has maintained higher lows, suggesting accumulation and medium-term bullish bias.
– The Relative Strength Index (RSI) crossed above the 50 line, reflecting building momentum on the upside.
Key Resistance Levels
The EUR/USD is facing the following resistance areas:
– 1.0797: This level serves as a near-term resistance that has capped gains in the past. A daily close above this price would confirm continued bullish control.
– 1.0894: This corresponds to the May high and would likely attract buyers looking to extend bullish gains further.
– 1.1000: A psychological level and longer-term resistance that previously acted as a ceiling for the March uptrend. A firm break could reestablish an aggressive bullish structure.
Support Levels to Watch
On the downside, the following levels are noted as critical supports:
– 1.0740: A minor price floor that kept today’s dips shallow.
– 1.0667: The key swing low from June 3. A drop below this level would negate current bullish momentum and reinstate broader bearish pressure.
– 1.0600: A round-number support level previously contested in April.
Intraday Performance
– Today’s price action reflects consolidation near 1.0790 as buyers and sellers await fresh catalysts.
– Volume remains relatively light, suggesting traders are cautious in positioning ahead of US CPI and FOMC updates due later this week.
– Volatility remains contained, with the Average True Range (ATR) holding below recent highs.
Moving Averages
– The 20-day Exponential Moving Average (EMA) is rising near 1.0720 and currently serving as dynamic support.
– The 50-day Simple Moving Average (SMA) is flattening near 1.0735, underscoring short-term bullish reversal signs.
– The 200-day SMA stands around 1.0800, which coincides with today’s resistance level and adds technical weight to this zone.
Momentum Indicators
– RSI (Relative Strength Index): Currently reading around 58 on the 4-hour chart, suggesting controlled bullish momentum without entering overbought territory.
– MACD (Moving Average Convergence Divergence): The histogram is above the zero line, while the MACD line is above the signal line. This supports the notion of a bullish trend continuation.
– Stochastic Oscillator: Currently in the mid-high range; not signaling extreme conditions, allowing room for price expansion on the upside.
Fibonacci Retracement Analysis
– The recent rebound aligns closely with the 38.2 percent Fibonacci retracement (from 1.0894 high to 1.0667 low), which sits near 1.0755 and was
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