In the 30-minute chart, EUR/USD has displayed a bearish bias, with the price currently heading lower towards the volume area low level of 1.06560. The market is currently forming a triangle pattern, indicating a consolidation within a narrow range. The convergence of the RSI heading into oversold territory, along with supportive indications from the momentum indicator and relative strength indicator, further suggests a bearish sentiment for the pair. Yesterday, the market experienced a decline of approximately 1.01% from its highs at 1.07790, and the break of the trendline at 1.06921 provides a short-term clue regarding the pair’s potential future movement. Price is currently below the 50 and 200 Day MA.
Two scenarios exist for the EUR/USD pair :
Scenario 1: The price tests the 1.6734 and 1.06560 levels, potentially leading to a further downward move towards the 1.06330 level, thus reinforcing the bearishness in the short term.
Scenario 2: The price tests the 1.6655 and 1.6560 levels, finding support and bouncing back to revisit the 1.06837 level and the psychological point of control level at 1.07300, which currently acts as resistance.
It is important to note that the market could range between the potential levels of 1.06330 and 1.07478, with the 1.07300 level acting as a significant resistance. Looking ahead, it is worth considering that prices could continue to decline and test the major support level at 1.05979. Should this level be tested and met with strong selling pressure, it could potentially lead to further downside momentum, influenced by news from the upcoming FOMC meeting scheduled for June 13th and 14th. The outcome of this meeting will play a crucial role in shaping the price movement of EUR/USD in the coming weeks.
