- EUR/USD sees its bounce cut back and returns to levels below parity.
- Firm containment is expected near the 0.9900 area.
The EUR/USD is under renewed strong downward pressure, falling back below the key parity zone on Thursday.
Further consolidation seems the most likely scenario in EUR/USD at the moment, still within the 1.0100-0.9900 range. The pair is expected to remain unchanged for the next few hours, or at least until the key US Non-Farm Payrolls release (Friday).
Breaking above the weekly high at 1.0090 (Aug 26) could spark further rallies to 1.0202 (Aug 17 high) ahead of the 55-day SMA today at 1.0213. Alternatively, the 0.9900 level is expected to maintain bearish momentum for now.
Longer term, the bearish view on the pair is expected to prevail as long as it trades below the 200-day SMA at 1.0801.
EUR/USD daily chart
Technical levels
Source: Fx Street
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