EURUSD has taken a bearish shift after failing to break above exponential moving average 200 in daily and retreated with a dovish rally below the Senkou Span B of the ichimoku cloud. Euro versus US Dollar also met a strong resistance at 1.1840 in shape of our upper trend line which the pair was unable to break and fell below a major price action 1.1780. This dovish stance is projecting a further downside towards 1.1600 - 1.1660. EURUSD is currently supported by a strong supply and demand area 1.1700 and 61.8% fibb retracement level in the weekly time frame. EUR/USD is attempting a recovery towards 1.1750 after the previous day’s fallout. The US dollar pares initial gains, still holds above 93.00. Indebted China’s Evergrande fears and pre-Fed anxiety could keep the further upside elusive for the currency pair. An uptick in the US 10-year benchmark yields at 1.32% limits the downside in the greenback, as investors digest China’s property giant Evergrande default risks and FOMC meeting anxiety. Meanwhile, Fed Chairman Jerome Powell is expected to pull back stimulus in the two-day FOMC meeting on Wednesday by reducing monthly bond purchases while keeping in mind that it should not be considered as a signal to a sooner rate hike.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

EUR/USD holds onto the previous day’s defensive performance around a monthly low during the sluggish start to Tuesday’s Asian session. That said, the major currency pair seesaws around 1.1730 by the press time. Although six-week-old horizontal support triggered the pair’s corrective rebound on Monday, two-month-long support, now resistance, as well as exponential moving average 50 in daily, challenges recover moves amid bearish MACD signals. Hence, any rebound becomes less important unless crossing the immediate horizontal hurdle near 1.1755, followed by the 50EMA level surrounding 1.1795 and the 1.1800 threshold. Even if the EUR/USD prices cross the 1.1800 mark, the mid-August top near 1.1805 and a descending resistance line from late June, around 1.1895 will question the bulls.

EURUSD

Sep 21 2021

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