The EURUSD lost momentum on Wednesday as concerns about the eurozone's economic outlook intensified. However, the intraday bias remains neutral and more consolidation is likely below 1.1008. A further rebound is expected as long as the 1.0722 support level is held. On the upside, a break above 1.1016 would resume the overall uptrend starting from 1.0450 and retest the high of 1.1274.
From a broader perspective, the EURUSD is still hovering within a consolidation zone in 2023 with strong resistance at 1.1275 (a 17-month high) and support at 1.0450 (a 10-month low).
If it breaks above the 200-week EMA, then it could touch the 200-week EMA at 1.1150 ahead of 1.1275. a move higher could shift the bias to bullish. However, any move below the 50-week and 100-week SMAs will cause it to fall to 1.0450, below which the psychological barrier of 1.0200 will be closely watched to prevent further declines.
In the near term, the EURUSD could break below 1.0880 and the 4-hour 100 SMA at 1.0870 to add bearish pressure and turn bears' attention to 1.0825 until the December low at 1.0715. It is recommended to go short at the highs.
From a broader perspective, the EURUSD is still hovering within a consolidation zone in 2023 with strong resistance at 1.1275 (a 17-month high) and support at 1.0450 (a 10-month low).
If it breaks above the 200-week EMA, then it could touch the 200-week EMA at 1.1150 ahead of 1.1275. a move higher could shift the bias to bullish. However, any move below the 50-week and 100-week SMAs will cause it to fall to 1.0450, below which the psychological barrier of 1.0200 will be closely watched to prevent further declines.
In the near term, the EURUSD could break below 1.0880 and the 4-hour 100 SMA at 1.0870 to add bearish pressure and turn bears' attention to 1.0825 until the December low at 1.0715. It is recommended to go short at the highs.
TP1 2051
TP2 2056
SL2036.