Market news

25 January 2023

EUR/USD Price Analysis: Extends bounce off 50-SMA inside bullish channel

  • EUR/USD grinds higher during five-week winning streak, steadies of late.
  • Bullish chart pattern, sustained bounce off 50-SMA joins upbeat RSI to keep buyers hopeful.
  • Sellers need to conquer monthly support to retake control.

EUR/USD prints mild gains around the 1.0900 threshold as traders await fresh clues to extend the five-day uptrend during Wednesday’s sluggish Asian session.

Even so, the two-week-old rising trend channel joins the EUR/USD pair’s successful rebound from the 50-SMA, around 1.0835 by the press time, to underpin the bullish bias for the major currency pair.

It’s worth noting that the weekly resistance breakout and the firmer RSI (14) also keep the EUR/USD bulls hopeful.

That said, the EUR/USD bulls are en route to the top line of the aforementioned bullish channel, close to 1.0945 at the latest.

Following that, the 1.1000 round figure and March 2022 peak surrounding 1.1185 could gain the market’s attention.

Alternatively, pullback moves need to drop back below the immediate resistance-turned-support line from Monday, close to 1.0875 at the latest, before aiming for the 50-SMA support of 1.0838.

Even if the EUR/USD pair remains bearish past 1.0838, the lower line of the stated channel, near 1.0820 by the press time, becomes the key to watch for clear directions.

It should be observed that a horizontal area comprising multiple levels marked since the start of 2023, close to 1.0700, will be crucial for the EUR/USD bear’s conviction.

EUR/USD: Four-hour chart

Trend: Further upside expected

 

Market Focus

Material posted here is solely for information purposes and reliance on this may lead to losses. Past performances are not a reliable indicator of future results. Please read our full disclaimer.

Open Demo Account
I understand and accept the Privacy Policy and agree that my name and contact details can be used by TeleTrade to contact me about the information I have selected.
23 International Awards
Have a question?

We are ready to assist you in every step of your trading experience
by providing 24/5 multilingual customer support.

Follow us

Risk Warning: Trading Forex and CFDs on margin carries a high level of risk and may not be suitable for all investors. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77.94% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Prior to trading, you should take into consideration your level of experience and financial situation. TeleTrade strives to provide you with all the necessary information and protective measures, but, if the risks seem still unclear to you, please seek independent advice.

© 2011-2023 Teletrade-DJ International Consulting Ltd

This website is operated by Teletrade-DJ International Consulting Ltd, which is registered as a Cyprus Investment Firm (CIF) under registration number HE272810 and is licensed by the Cyprus Securities and Exchange Commission (CySEC) under license number 158/11. Teletrade-DJ International Consulting Ltd is located at 88, Arch. Makarios Avenue, 2nd floor, Nicosia Cyprus.

The company operates in accordance with the Markets in Financial Instruments Directive (MiFID).

The content on this website is for information purposes only. All the services and information provided have been obtained from sources deemed to be reliable. Teletrade-DJ International Consulting Ltd ("TeleTrade") and/or any third-party information providers provide the services and information without warranty of any kind. By using this information and services you agree that under no circumstances shall TeleTrade have any liability to any person or entity for any loss or damage in whole or part caused by reliance on such information and services.

TeleTrade cooperates exclusively with regulated financial institutions for the safekeeping of clients' funds. Please see the entire list of banks and payment service providers entrusted with the handling of clients' funds.

Please read our full Terms of Use.

To maximise our visitors' browsing experience, TeleTrade uses cookies in our web services. By continuing to browse this site you agree to our use of cookies.

Teletrade-DJ International Consulting Ltd currently provides its services on a cross-border basis, within EEA states (except Belgium) under the MiFID passporting regime, and in selected 3rd countries. TeleTrade does not provide its services to residents or nationals of the USA.

Material posted here is solely for information purposes and reliance on this may lead to losses. Past performances are not a reliable indicator of future results. Please read our full disclaimer.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77.94% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Choose your language/location