EUR/USD came under renewed bearish pressure and dropped below 1.0400 in the second half of the day on Friday. The US Dollar gathers strength amid risk aversion and forces the pair to push lower. Trading volumes are likely to remain thin on Black Friday.

Investors are punishing the US Dollar as Fed policymakers have vouched for a slowdown in the interest rate hike. However, the core CPI that excludes oil and food prices has not shown a significant drop. On the Eurozone front, investors are keeping an eye on the price cap structure to be introduced for the European gas ahead.

EUR/USD is displaying a lackluster performance in the Tokyo session after resurfacing from the critical support of 1.0382. The Euro pair is oscillating above the round-level support of 1.0400. The major is awaiting a potential trigger for a fresh impetus as the market mood is extremely quiet amid the holiday in the United States on account of Thanksgiving Day.

EUR/USD is playing with the 200-period Exponential Moving Average (EMA) at 1.0389 on a daily scale. The corrective move in the asset after printing a high of 1.0482 on November 15 to near 1.0226 has been supported by the upward-sloping trendline placed from November low at 0.9730. Going forward, potential resistances are plotted from June 27 high at 1.0615, and May 30 high at 1.0787.

The Relative Strength Index (RSI) (14) is oscillating in a bullish range of 60.00-80.00, which indicates that the upside momentum is active.

EURUSD Can Drop a bit or Continue Uptrend from CMP

farhan fazal

Nov 25 2022

Pending

Published 75d ago

1.07157

Current price

1.01493

Entry price