EUR/USD Weekly Chart Analysis – 2023-09-25

The EUR/USD pair is currently displaying a bearish range momentum on the weekly timeframe, suggesting a predominantly bearish sentiment in the market. The price is positioned below both the 50-day and 200-day moving averages, underscoring the overall bearish trend.

Looking ahead, the impact of the Economic and Monetary Union (EMU) Harmonized Index of Consumer Prices (HICP) and the US Personal Consumption Expenditures (PCE) index, set to be released on Friday, is anticipated to be substantial, potentially further shaping the currency pair’s trajectory.

Scenario 1: In the event of a bullish reversal, the price may ascend and retest the 1.06700 to 1.06964 level. A successful test at this range could pave the way for further upward movement towards the 1.07273 and 1.07649 levels, with potential continuation to the 1.07792 level. Beyond this point, the price may target higher resistance levels at 1.08004 and 1.08231.

Scenario 2: Conversely, if the price reverses from its current levels, it may head lower and test the 1.06300 support level. A successful test at this level could lead to further downward movement towards the 1.06359 level, followed by the next significant support at 1.06099. Depending on market sentiment, there is a possibility of the price descending to the 1.05867 to 1.05678 range, with 1.05449 acting as a major support level in the event of a breach of these levels.

It’s important to consider that if bearish sentiment prevails, the price may revisit the levels seen in the previous week near 1.07273.The Relative Strength Index (RSI) currently indicates a bearish oversold range, but there has been a decrease in momentum on the weekly timeframe, suggesting a potential stabilization in the near term.

In summary, the EUR/USD technical snapshot presents a bearish outlook on the weekly chart, with a focus on key support and resistance levels.