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EUR/USD Price Analysis: Remains below 1.0750 after breaking down the rectangle formation

  • EUR/USD could test 1.0700 level after the 1.0601 retracement support level.
  • Technical analysis of the daily chart suggests a bearish trend for the pair.
  • The immediate barrier appears at the lower boundary of the rectangle formation around the 50-day EMA at 1.0802.

EUR/USD extends its losses for the second day in a row, trading around 1.0730 in the early part of Friday. A technical analysis of a daily chart suggests a bearish trend for the pair as it struggles below the lower threshold of a rectangle formation.

Furthermore, the 14-day Relative Strength Index (RSI) momentum indicator is positioned below the 50 level, suggesting a confirmation of a bearish trend for the EUR/USD pair.

The EUR/USD pair could find immediate support at the psychological level of 1.0700. A break below this level could put downward pressure on the pair to test the 1.0601 retracement support level.

To the upside, the EUR/USD pair could retest the lower boundary of the rectangle formation around the 50-day Exponential Moving Average (EMA) at 1.0802. A return to the rectangle formation could weaken the downtrend and strengthen the pair to explore the psychological level of 1.0900, aligned with the upper boundary of the rectangle formation around the 1.0905 level.

A break above this last level could support the pair to explore the region around the March high of 1.0981.

EUR/USD: Daily Chart

EUR/USD

Summary
Latest price today 1.0736
Today’s daily change -0.0001
Daily change % today -0.01
Today’s daily opening 1.0737
Trends
SMA20 Journal 1.0833
SMA50 Daily 1.0776
SMA100 Journal 1.0803
SMA200 Journal 1.0789
Levels
Previous Daily High 1.0816
Previous Daily Low 1.0733
Previous Weekly High 1.0916
Previous Weekly Low 1.08
Previous Monthly High 1.0895
Previous Monthly Low 1,065
Daily Fibonacci 38.2% 1.0765
Daily Fibonacci 61.8% 1.0785
Daily Pivot Point S1 1.0708
Daily Pivot Point S2 1.0679
Daily Pivot Point S3 1.0624
Daily Pivot Point R1 1.0791
Daily Pivot Point R2 1.0846
Daily Pivot Point R3 1.0875

Source: Fx Street

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