Euro technical analysis The euro is aiming for the worst week against the US dollar since late February, which was when EUR/USD sank the most since M
Euro technical analysis
The euro is aiming for the worst week against the US dollar since late February, which was when EUR/USD sank the most since March 2020. Over the past 24 hours, the single currency cleared the 2020 low, confirming a breakout under 1.0636. That has the pair setting course for the 2017 bottom, where a zone of support between 1.0340 – 1.0388 awaits it.
Getting there does entail clearing the 100% Fibonacci extension at 1.0496 on the chart below. Beyond the 2017 low sits levels last seen in 2002. The 138.2% extension can also kick in as support at 1.0233 if prices declined to those levels. Keep a close eye on RSI, positive divergence does continue to persist. That shows fading downside momentum, which can at times precede a turn higher.
In the event of a turn higher, there is some room higher before common Simple Moving Averages come into play. These include the 20- and 50-day lines, which can hold as resistance and reinstate the broader downside focus. Immediate resistance could be the 2020 low at 1.0636, which could reinstate itself as a new ceiling.
EUR/USD daily chart
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