Market news

5 August 2022

EUR/USD Price Analysis: Declines to familiar levels above the 20-DMA

  • The EUR/USD snaps two straight weeks of gains, drops 0.42%.
  • The common currency is trendless, within the boundaries of 1.0096-1.0278.
  • From a daily chart perspective, the EUR/USD might probe the 1.0096 low before a re-test of YTD lows below the parity.

The EUR/USD slumps late as Wall Street close looms, down by 0.62%, battered by an upbeat US employment report that bolstered the greenback while increasing the odds of another “jumbo” rate hike by the Fed in the September meeting. Meanwhile, the EUR/USD Is trading at 1.0180 at the time of writing.

EUR/USD Price Analysis: Technical outlook

The shared currency daily chart illustrates the pair consolidating within the 1.0096-1.0278 area. Although the US Nonfarm payrolls report underpinned the greenback, the EUR/USD stood tall and bounced off the daily low of 1.0141, reclaiming the 20-day EMA. Still, the major is subject to selling pressure, as the RSI shifted gears, aiming downwards, and crossed below its 7-day SMA, opening the door for further downside.

Hence, the EUR/USD first support would be the 20-day EMA at 1.0158. Break below will expose the bottom of the abovementioned trading range at 1.0096, which, once cleared, opens the way to refresh YTD lows below parity.

On the flip side, the EUR/USD first resistance is the 1.0200 figure. A breach of the latter will send the euro towards August’s 2 daily high at 1.0293 before probing the 1.0300 figure.

EUR/USD Daily chart

EUR/USD Key Technical Levels

 

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