Sun, Feb 05, 2023 @ 17:32 GMT
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EUR/USD Losing Momentum

Price changed little in the early morning, has opened with a gap down and seems too overbought to resume the upside movement. Is trading in the red right now and could hit new lows in the upcoming days if the USDX will really start another leg higher after the massive drop.

EUR/USD is trading above the 1.2010 level and stays in the green area, but the bulls seem exhausted. We’ll see what will happen in the upcoming days because we still need a confirmation that the rate will start another leg lower.

We have a poor economic calendar, so the rate will be driven by the technical factors today. Price shows some exhaustion signs, but as I’ve said, is premature to talk about a broader corrective phase.

Price is facing tough resistance on the Daily chart, you can see that has found strong resistance right above the 1.2041 static resistance and above the outside sliding line (sl) of the minor ascending pitchfork. EUR/USD failed to close above these levels and above the 50% Fibonacci line (ascending dotted line) and now should retest the upper median line (uml) of the minor ascending pitchfork.

I’ve said in the previous weeks that the rate will come back to retest the mention levels after the false breakdown below the median line (ml) of the minor descending pitchfork. Could drop again if stays within the descending pitchfork’s body, you can see that has retested the upper median line (uml), a breakdown below the upper median line (uml) of the minor ascending pitchfork will confirm a further drop.

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