The EUR/USD pair has been trading in a volatile manner in recent weeks, with the Euro bulls taking a break around the 1.0600 level on Tuesday after posting the biggest daily gain in nearly a month the previous day. This marks the first monthly loss for the pair in five months. The EUR/USD pair’s sustained bounce off the 1.0530 support confluence, as well as the break of the previous resistance line from February 14, is giving the short-term Euro buyers hope.
The bearish MACD signals and downbeat RSI (14), as well as the pair’s recent inaction around the 1.0600 round figure, is challenging the bulls below the 50-day EMA hurdle of 1.0665. This means that the Euro bulls have a bumpy road ahead of them unless they manage to break the 1.0665 mark. A downside break of the resistance-turned-support line, near 1.0585, could drag the pair back to the 1.0530 support confluence.
The EUR/USD pair’s weakness past 1.0530 could witness a bumpy road towards the south as lows marked during January 2023 and early December 2022 could challenge the bears around 1.0480 and 1.0440 in that order. Technical analysis of the daily chart shows that the pair is currently trading in a limited upside direction, with the 50-day EMA and 61.8% Fibonacci retracement level of the pair’s moves between late November 2022 and early February 2023 highlighting 1.0530 as the key support.
The EUR/USD pair’s recent price action has been volatile and unpredictable, with the bulls having a bumpy road ahead of them unless they manage to break the 1.0665 mark. On the other hand, the bears will have a tough time if they manage to break the 1.0530 support confluence, as the lows marked during January 2023 and early December 2022 could challenge them around 1.0480 and 1.0440, respectively.
Overall, the EUR/USD pair is expected to remain in a limited upside direction, with the 50-day EMA and 61.8% Fibonacci retracement level of the pair’s moves between late November 2022 and early February 2023 highlighting 1.0530 as the key support. The bearish MACD signals and downbeat RSI (14) are challenging the bulls below the 50-day EMA hurdle of 1.0665, while a downside break of the resistance-turned-support line, near 1.0585, could drag the pair back to the 1.0530 support confluence.
In conclusion, the EUR/USD pair is expected to remain in a limited upside direction in the near-term, with the bulls having a bumpy road ahead of them unless they manage to break the 1.0665 mark. On the other hand, the bears will have a tough time if they manage to break the 1.0530 support confluence, as the lows marked during January 2023 and early December 2022 could challenge them around 1.0480 and 1.0440, respectively.
