**EUR/USD Mid-Day Outlook – Detailed Technical Analysis**
*Original analysis by ActionForex (https://www.actionforex.com/technical-outlook/eurusd-outlook/618340-eur-usd-mid-day-outlook-2196/)*
The EUR/USD pair was relatively stable in mid-day trading following a short-lived attempt to break the recent bullish momentum. While the pair pulled back slightly from its recent highs, the overall undertone remains constructive. The broader technical structure continues to favor the bulls as we observe buying interest around key support levels. Optimism persists for a further rise unless sellers gain control and drive prices below pivotal technical regions.
This in-depth analysis offers a comprehensive technical perspective on the EUR/USD market, including key levels, momentum indicators, and the likely scenarios in both the short and medium term.
**Current Market Conditions**
As of the latest trading session:
– EUR/USD made a minor retreat but has not threatened the immediate bullish bias.
– Momentum signals point to continued support above certain thresholds.
– The market is watching closely for a potential continuation of the uptrend initiated earlier this month.
**Short-Term Technical Outlook**
On the 4-hour chart:
– A minor fall was observed, but key support levels are holding.
– So far, the retreat has been contained above the 1.0723 cluster zone.
– This cluster includes:
– 55 4-hour Exponential Moving Average (EMA).
– 38.2% Fibonacci retracement of the 1.0600 to 1.0808 rise.
– The pair is engaging in a relatively healthy consolidation following its recent rally.
Unless there is a strong break below this cluster support, the immediate bias remains on the upside.
**Upside Prospects**
– A firm break above 1.0808 would confirm resumed bullish momentum.
– If upward movement is sustained, the next target is the 1.0887 resistance.
– This level represents the high from April 10 and marks the upper bound of the recent consolidation range.
– Sustained trading above 1.0887 could facilitate a broader recovery phase in EUR/USD.
**Momentum Indicators**
– Relative Strength Index (RSI): The RSI is moderating but remains in bullish territory.
– Moving Averages: Short-term moving averages support the recovery, keeping the pair aligned in positive direction.
– MACD (Moving Average Convergence Divergence): On the 4-hour chart, MACD histogram maintains a weak bullish posture, while signal lines are flattening, suggesting minor consolidation before a potential upside breakout.
**Short-Term Support Levels**
Key supports to monitor closely:
– 1.0723 support zone (includes 55 EMA and 38.2% Fibonacci level).
– A break below 1.0723 would shift short-term focus to:
– 1.0665 zone which includes the 61.8% Fibonacci retracement.
– A breach here would suggest a topping formation and could trigger a deeper correction.
Should the pair drop beneath 1.0665:
– The next downside target would be 1.0600 psychological level.
– Below 1.0600, attention would turn to 1.0530 area corresponding to prior swing lows.
– Breakdown of this level would signal a more bearish structure and an end to the current recovery move.
**Medium-Term Technical Picture**
Looking at the daily chart:
– The pair remains within the broad range established in April between 1.0600 and 1.0887.
– Despite recent pullbacks, the pair has yet to break firmly below this range, maintaining the prospects of a neutral to bullish bias in the medium term.
In the event that 1.0887 is decisively breached:
– The pattern will evolve into a confirmed reversal of the April-to-May decline.
– Next upside targets would be:
– 1.0966: Key resistance level corresponding to highs posted in late March.
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