EUR/USD stayed in sideways consolidation last week, and ActionForex keeps its outlook unchanged with a neutral initial bias. The analysis expects further decline while 1.1276 resistance holds, and a firm break above that level would signal a short-term bottom.
EUR/USD stayed in sideway consolidations last week, and ActionForex says the outlook is unchanged. The initial bias stays neutral this week, but further decline is expected as long as 1.1276 resistance remains intact.
A break below 1.1111 would extend the larger fall from 1.2081 to the 1.0904 fibonacci level. A firm break of 1.1276, however, would indicate short-term bottoming and bring a stronger rebound to the 55 D EMA, now at 1.1373.
In the bigger picture, ActionForex says the fall from the 1.2081 medium-term top could be reversing the rise from 1.0176, the 2025 low, and probably even the one from 0.9534, the 2022 low. Deeper fall should be seen to the 61.8% retracement of 1.0176 to 1.2081 at 1.0904, and risk stays on the downside as long as 1.1710 resistance holds in case of a rebound.
In the long term picture, the immediate focus is the 55 M EMA, now at 1.1246. A sustained break there would argue that the rise from 0.9534 has completed as a three-wave corrective move at 1.2081, after rejection at the 38.2% retracement of 1.6039 to 0.9534 at 1.2019. That level is close to the 1.2000 psychological mark, and such a break would keep the long term down trend from the 2008 high of 1.6039 intact.
Source: ActionForex
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