The EUR/USD pair is in a bearish undertone on the weekly timeframe juxtaposed with short-term bearishness. This intricate interplay is reflected in the current positioning of the price, sandwiched between the 50 and 200-day moving averages, both of which underscore a prevailing bearish trend.
Scenario 1: Potential Upside Momentum
Should the price manage to orchestrate an ascent, its trajectory could align with a retest of the 1.10308 level. A successful breach here may usher in additional upward momentum, targeting levels such as 1.09435 and 1.10514. The momentum might further carry the price towards the 1.10593 level, possibly paving the way for advances to the 1.10739 and 1.10931 thresholds. Sustained vigor could propel the price to explore the range between 1.11071 and 1.11191, with the zenith of resistance residing at 1.11290 and 1.11662.
Scenario 2: Contemplating Downside Possibilities
On the flip side, a reversal from current levels could usher in a descent, putting the 1.09840 level to test. Should this examination prove fruitful, a descent towards the 1.09171 level is conceivable. This level’s significance is underscored by its status as a key support, setting the stage for further downside probing, possibly extending to the 1.08960 to 1.08640 region. It’s pivotal to track the 1.08446 to 1.08231 support band, with particular emphasis on the 1.08960 level; breaching these levels could herald extended bearishness, accompanied by a notable bearish support zone around 1.08819.
Weekly Momentum and RSI Interpretation
Despite the EUR/USD pair’s intricate technical situation, the Relative Strength Index (RSI) remains in an indecisive range. However, a discernible decrease in momentum on the weekly timeframe warrants attention, as it could hint at a potential shift in market sentiment.
In conclusion, the EUR/USD pair is entangled in a nuanced technical landscape characterized by divergent short-term bearishness and the prevailing bearish momentum on the weekly timeframe. Key levels include 1.09840, 1.09416, 1.09171, 1.08960, 1.10443, 1.11552, and 1.11191.Â
