EURUSD Confronts Upside Challenge At 1.2200, Dollar Retains Strength

EURUSD Confronts Upside Challenge At 1.2200, Dollar Retains Strength

EURUSD Price Analysis – June 7

The EURUSD pair has so far failed to break over the 1.2250 upside barrier in the last trading week and is currently trading below it. Currently, the pair is holding gains above the 1.2150 zone. In the near term, a move towards a consolidative phase is possible, especially ahead of the major ECB event later this week.

Key Levels
Resistance Levels: 1.2300, 1.2266, 1.2200
Support Levels: 1.2150, 1.2100, 1.2050
EURUSD Long term Trend: Ranging
From the daily chart, amid the recent rebound, a further weakening is not ruled out, although the EUR is unlikely to keep a foothold below the major support level of 1.2100 due to range conditions. A breakout of the 1.2200 level on the upside would imply the prior downturn has steadied. Meanwhile, the EUR’s prognosis remains gloomy, with “additional falls beneath the 1.2100 level not out of the question.”

A clear breach of the 1.2100 level might also shift focus to the 1.2050 low level in the near term. Only a break of the medium-term resistance level of 1.2266 could signal that the EUR’s current bearish phase is over. After hitting a low of 1.2144, the pair is presently trading near 1.2200, representing a 0.25% gain on the day.
EURUSD Short term Trend: Ranging
The intraday bias in EURUSD on the 4-hour time frame remains neutral for some range trading beneath the 1.2200 marks, while the market above may turn bullish. Meanwhile, the 1.2050 support level should restrain the downside of subsequent decline on the pair allowing for another increase.

On the upside, a break of the 1.2266 level could lead to a forecast of 1.1985 to 1.2100 levels from the current level of 1.2150 at 1.2300. The pair is currently indicating a short-term surge to the upside approaching 1.2200 levels. Any further losses might push the pair down below the 1.2150 support level.

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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.