EUR/USD TECHNICAL ANALYSIS
EUR/USD has consolidated this week after making a 3-month low last Thursday.
The close on that day was below the lower band of the 21-day Simple Moving Average (SMA) based Bollinger Band.
The day after, it closed back inside the band. This might technically signal a pause in the bearish run or a potential reversal.
Conversely, the price remains in a descending trend channel that emerged after making a peak in July at 1.1276 which was among two breakpoints of 1.1273 and 1.1280. This might set up the 1.1270 – 1.1280 area as a resistance zone.
With these conflicting signals in mind, the recent retreat from pushing lower might confirm the range trading environment for EUR/USD. It has traded between 1.0516 and 1.1276 since the beginning of 2023.
Nearby resistance could be at Tuesday’s high near 1.0770, which also has a breakpoint nearby. Above there, a series of breakpoints in the 1.0530 – 1.0835 area and the 200-day SMA may offer resistance.
Further up, the prior peak at 1.0945 and the 55-day SMA nearby, could offer resistance ahead of a cluster zone of breakpoints and recent highs in the 1.1065 – 1.1105 area.
On the downside, support may lie at the prior lows of 1.0686, 1.0667, 1.0635, 1.0525, 1.0483 and 1.0443.