The EUR/USD is following a well-defined technical script following the ECB's 25 basis point rate cut. The pair first fell to a low of 1.0463, just above the upper limit of the main swing range between 1.0448 and 1.0461. Buyers entered at this level of risk interpretation, triggering a rebound.
The upside move brought the price towards the 100-bar moving average (MA) on the 4-hour chart, located at 1.0518. Just above that, the MA 200-hour 1.0528 provided another area of protection. The high reached 1.05202, stopping below these critical MAs.
Technical Overview:
- Opposition group: The 100-bar MA on the 4 hours at (1.05218) and 200-hour MA (1.0528) has ended gains for the past two days, with sellers continuing at those levels.
- Support zone: 1.0448-1.0461 – A revisit to this area could attract buyers again if the price remains below the moving averages.
Views:
- Bullish Case: A break above the 200-hour MA at 1.0528 would open the door to further gains, targeting the next swing resistance between 1.0592 and 1.06097.
- Bearish Case: Staying below the moving averages will give sellers control, which could lead to a retest of the 1.0448-1.0461 support area.
The price action adheres closely to key technical levels, with the battle between buyers and sellers based on these key areas.
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