Baxia Markets
June 17, 2024

EURUSD Eyes Shallow Retracement: Key Levels and Indicators Analyzed

market analysis header image


EURUSD Pullback Analysis Post-180 Pips Drop

EURUSD experienced a significant pullback after a 180-pips drop last week, starting from Wednesday. The market broke a key support level, highlighted in an orange rectangle, signaling a bearish sentiment. Prices are expected to retrace to the 38.2% and 23.6% Fibonacci retracement levels, which are considered shallow retracements. Within this retracement zone lies the EMA 50, which could act as a confluence level with the Fibonacci retracement and the key level resistance marked by the orange rectangle.

EURUSD Eyes Shallow Retracement: Key Levels and Indicators Analyzed

Bearish Indicators and Market Sentiment

The current price is trading below the value area, reinforcing the bearish outlook. Both the EMA 50 and EMA 200 are aligned in a bearish configuration, with the EMA 50 positioned below the EMA 200. The lack of convergence between these EMAs indicates sustained bearish momentum. Oscillator indicators further support this sentiment, with the MACD's signal line below the 0 line and the RSI struggling to break above the 50-60% levels.


Short-term Trend Line and Potential Continuation

As the market attempts to rebound from last week’s losses, a short-term trend line has developed, indicated in red. A break below this trend line could strongly suggest a continuation of the bearish trend.

Key Economic Releases to Watch Today

Currency Event Forecast Previous
CAD Housing Starts (May) 247.0K 240.2K
USD NY Empire State Manufacturing Index (Jun) -12.50 -15.60
CAD Foreign Securities Purchases (Apr) 12.30B 14.37B



News Article CTA - Trading with Baxia Markets 2024

Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. 

Nothing contained in this website should be construed as investment advice. Any reference to an investment's past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit.

Subscribe by Email