**EUR/USD Daily Outlook (Extended Analysis)**
*Original Article by ActionForex.com*
The EUR/USD pair remains under pressure in the daily timeframe as reflected in its ongoing consolidative correction. Momentum indicators and price action signals suggest that bullish potential is limited under the current resistance zone, while downside risks continue to linger. This extended technical analysis provides a deeper examination of price behavior, key resistance and support levels, and possible forecast scenarios based on current market dynamics.
**Short-Term Market Overview**
– The EUR/USD pair is neutral in tone for now, hovering near support levels after recent gains lost momentum.
– The pair made an intraday retreat after being unable to hold above the 1.0900 zone, emphasizing short-term rejection.
– According to chart dynamics, the overall trend has not yet broken below key levels, but the absence of follow-through buying keeps the pair vulnerable to further retreat.
**Immediate Technical Bias**
– Short-term bias remains neutral as long as the pair maintains position above the minor support zone surrounding 1.0810.
– A convincing break below this key level would reactivate the recent correction from 1.0915, marking a more aggressive pullback phase.
– In such a scenario, market participants should look for potential retracements toward the 1.0723 low posted on April 16.
**Resistance Levels to Watch**
– Initial resistance is located at 1.0894, which is aligned with recent corrective highs.
– A clean breach above this obstacle would confirm the resumption of the rebound from the April 16 low at 1.0600.
– Further resistance levels to monitor include:
– 1.0915: A psychological ceiling that produced a strong rejection during earlier sessions.
– 1.0960: Next area of structural resistance that coincides with previous reaction highs.
– 1.1000: A psychological milestone that could provoke strong profit-taking or renewed selling pressure.
**Support Levels in Focus**
– 1.0810: A critical pivot level that has provided consistent support.
– 1.0775: A secondary support zone that may cap initial downside momentum.
– 1.0723: The significant April 16 swing low; a decisive break would signal a broader correction towards recent lows.
– 1.0600: A key longer-term floor; any approach to or break of this level would suggest the re-establishment of bearish long-term trend structure.
**Technical Indicators and Chart Signals**
– The 4-hour RSI remains flat near the 50-neutral line, indicating a lack of definitive directional trend at the intraday scale.
– Daily MACD is trending above its signal line, which offers modest upside bias, but momentum remains weak.
– Price is consolidating between short-term moving averages, suggesting neither bulls nor bears have full control at present.
**Trend Analysis and Momentum Structure**
– Despite recent rebounds, the broader bias remains sideways within a defined range structured by 1.0600 on the downside and 1.0915 on the upside.
– The failure of EUR/USD to make a higher high above the 1.0915 level warns traders of continued range trading conditions.
– Unless the pair can sustain price action above the 1.0915 level, deeper corrective activity remains the primary outlook.
**Scenario 1: Bullish Breakout Anticipation**
– A bullish scenario would be confirmed if EUR/USD breaks and maintains movement beyond 1.0915.
– This would indicate the completion of a three-legged correction that began from the April low.
– In this case, investors may anticipate:
– Acceleration toward 1.1000 and possibly 1.1095, which aligns with the March peak.
– A longer-term rally phase targeting 1.1135 and ultimately 1.1270 if bullish momentum is maintained.
– For this outlook to materialize, there needs to be increased euro demand, possibly driven by:
– Hawk
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