EURUSD rebounds from lows at 1.1835 level amid a plunge in the US 10-year yield

EURUSD Price Analysis – March 9

The EURUSD plunged to a low of 1.1835 level early in the European session on Tuesday hitting the lowest level in months. At the time of this post, the pair rebounds from the low as loss of near term downward momentum is likely to keep price above mid 1.1800 level in the session.

Key levels
Resistance Levels: 1.2113, 1.2050, 1.1952
Support Levels: 1.1880, 1.1740, 1.1602
EURUSD Long term Trend: Ranging
From the daily chart, further weakness is not ruled out but severely oversold conditions suggest EUR is unlikely able to maintain a foothold below the major support at 1.1800 level. On the upside, a breach of the 1.1887 level would indicate the current weakness has stabilized. Meanwhile, the outlook for EUR remains negative’ and ‘further losses to 1.1800 level would not be surprising.

Also further ahead, a clear breach of the 1.1800 level may change the attention towards the 1.1740 low level. Only a break of 1.1952 level medium-term resistance may imply the present negative phase in EUR has run its course. The pair now trades near 1.1887, representing a 0.12% gain on the day, having hit a low of 1.1835 low.
EURUSD Short term Trend: Bearish
Earlier the EURUSD declined below the support of the 1.1887 marks and it’s now flipped again. Following the decline were the 1.1850 marks and a bounce at the 1.1835 low level. As the mentioned support levels have held the bearish run, the rate could recover and test the resistance of the 1.1952 level.

At the moment, attention to bottoming signal at the present low level of 1.1835 is crucial. The upside breach of 1.1952 support altered resistance may imply short-term bottoming and change the bias to the upside. However, a decisive break of the 1.1845 marks may extend the correction to 38.2% retracement of 1.0635 to 1.2348 at 1.1693 levels.

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