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EUR/USD outlook neutral, but 1.1323 break would resume deeper fall

Analysts said a decisive move above 1.1499 would flip the bias to the upside toward the 55-day EMA near 1.1546.

Reported · Written up by our desk · Major Pairs

EUR/USD trading bias remains neutral amid consolidation above 1.1323, according to Action Forex. The outlook turns bearish if price breaks 1.1323, which would resume a decline viewed from the 1.2081 peak.

Action Forex expects a deeper fall if 1.1323 fails, projecting a move to 1.1175 as part of the 100% projection from 1.2081 to 1.1408, calculated off the 1.1848 reference. In the broader picture, the focus is on the 38.2% retracement zone at 1.1353, where a decisive break would revive the case for a medium term bearish trend reversal.

If 1.1499 breaks decisively, however, the analysis says it would turn bias back to the upside and target the 55-day EMA near 1.1546 and higher. Further downside is then expected toward the 61.8% retracement at 1.0904 if 1.1353 gives way.

The note also flags that a strong rebound from 1.1353, followed by a break of 1.1621, would retain medium term bullishness. Action Forex framed these levels as the key triggers for the near-term direction in the pair.

Latest closeEUR/USD 1.122 ▼0.3%

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