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EURUSD Eyes Shallow Retracement: Key Levels and Indicators Analyzed

Written by Baxia Markets | Jun 17, 2024 12:07:45 PM

 

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.

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

 

 

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