EURUSD Pair Stays on the Back Foot Around 1.2100 as US Yields Extend Gains

EURUSD Price Analysis – February 22

EURUSD has reversed from session highs and now trading near 1.2100, having reached a high of 1.2135 level at the day’s beginning. The dollar recovers as US yields extend gains, equities drop. A continued rise in yields could trigger a market correction while boosting the USD.

Key Levels
Resistance Levels: 1.2350, 1.2240, 1.2150
Support Levels: 1.2081, 1.2011, 1.1952
EURUSD Long term Trend: Ranging
The advance from the prior week low at 1.2023 level to as high as the 1.2144 level on Friday is due to renewed dollar’s weakness on continued risk appetite and suggests reversal from the prior week’s high at 1.2169 has ended where the upsurge from the trough at 1.1952 level may extend marginal gain.

However, on the downside, a daily exit beneath 1.2081 low level signals a high is reached and shifts the risk to downside for weakness towards 1.2050 level. On the flip side, Looking up, resistance awaits at 1.2150, which was a high point on Friday. It is followed by 1.2190 and support is at 1.2081, where the MA 13 hits the price.
EURUSD Short term Trend: Ranging
Looking at the 4-hour chart, the pair recovered nicely above 1.2050 and the moving average 13. The pair broke the 50% retracement level of the downward move from the 1.2169 high to 1.2022 marks. The pair is now facing a strong resistance near 76.4% retracement level of the downward move from the 1.2169 high to 1.2022 marks.

Meanwhile, EURUSD is still bounded in the range of 1.1952/1.2169 levels and intraday bias remains neutral for the moment. On the upside, a break of 1.2169 may restart the rebound from the 1.1952 level for retesting the 1.2350 level. On the downside, a break of 1.1952 may extend the correction from 1.2350 with another plunge.

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