FxNews—The European currency (euro) trades in a robust bear market against the Greenback (dollar). As expected, the pair bounced from the %50 Fibonacci level on Friday (November 22). This surge was mainly due to the oversold signal from the Stochastic and RSI 14 indicators, highlighted in the 4-hour chart below.
As of this writing, EUR/USD trades at approximately 1.049, pulling back from the 50-period simple moving average.
EURUSD Technical Analysis
The primary trend is bearish because EUR/USD prices are below the 50- and 100-period simple moving averages. Meanwhile, the Awesome Oscillator histogram is green but below zero. Furthermore, the RSI is above the median line, and the Stochastic Oscillator is depicted as 72 in the description.
Overall, the technical indicators suggest while the primary trend is bearish, the EUR/USD prices could rise higher.
Bearish Wave Looms if EUR/USD Breaks 1.045 Support
The immediate support is at 1.045. From a technical perspective, a new bearish wave will likely remerge if EUR/USD prices fall below this mark. In this scenario, the next bearish target could be 1.03, followed by 1.017, the 61.8% Fibonacci retracement level.
On the other hand, EUR/USD could revisit the April 16 high at 1.06 if prices remain above the immediate support (1.045). Furthermore, if buying pressure exceeds 1.06, the next bullish target could be $1.066, backed by the 100-period simple moving average.
- Support: 1.045 / 1.037 / 1.017
- Resistance: 1.06 / 1.076