EUR/USD Price Analysis: Bounced off an upslope trendline, braces to 1.1300
- The shared currency slides for the second straight day, down 0.19%.
- The crisis in eastern Europe weighs on the EUR boosts the safe-haven peers.
- The EUR/USD is downward biased, though upside risks remain as the 50-DMA closes to the spot price.
During the North American session, the euro slumps, attributed to a risk-off market mood that has spurred demand for safe-haven assets, meaning a higher USD. Factors like the Ukraine – Russia crisis and the Fed’s first monetary policy meeting of the year maintain market participants uneasy, as portrayed by US equities trading in the red. At the time of writing, the EUR/USD is trading at 1.1300.
In the meantime, the US Dollar Index, a gauge of the greenback’s value versus a basket of its rivals, advances some 0.10%, sitting at 96.01, clinging to the 96.00 threshold.
On Tuesday, during the overnight session for North American traders, the EUR/USD fell from 1.1325 towards the figure, giving way for USD bulls, who secured a 40-pip move to the daily low of the day at 1.1263. However, as the New York session progressed, EUR bulls entered the market, reclaiming the 1.1300 figure.
EUR/USD Price Forecast: Technical outlook
That said, the EUR/USD pair is neutral-downward biased. The 50-day moving average (DMA) moves close to the spot price, leading the way for the longer time-frame ones, with the 100-DMA and the 200-DMA lying at 1.1469 and 1.1708 each. Nevertheless, the bias is downward as long as the exchange rate remains below the former.
On the downside, the EUR/USD first support would be an upslope trendline drawn from December 2021 swing lows, which passes around the 1.1290-1.1300 area. In the outcome of breaking lower, the next support would be December 15, 2021, a daily low at 1.1221, followed by 2021 yearly low at 1.1186.
To the upside, the first resistance would be the 50-DMA at 1.1314. A breach of the latter would expose the January 20 pivot high at 1.1369, followed by the January 14 daily low previous support-turned-resistance at 1.1399.
