EURUSD Indecisive Market Lacks Follow-Through Buying

EURUSD Price Analysis – June 6

The EURUSD is stuck between February’s high of 1.2243 and a long-term restricting horizontal barrier line, which if broken would open the way to the top of a larger uptrend that began in March 2020. The EURUSD indecisive market lacks follow-through buying beyond 1.2245 barriers. Overall, the safe-haven USD gains were limited by the risk-on mood, which helped limit the downside.

Key Levels
Resistance Levels: 1.2414, 1.2350, 1.2245
Support Levels: 1.2150, 1.2100, 1.2050
EURUSD Long term Trend: Ranging
On Monday, the EURUSD pair saw some buying in the initial half of the European trading session, up from 1.2171 with about 50 pips from the lows set earlier at the weeks open. The RSI has been unable to restart upward movement in recent days, while the price trades around the 5 and 13 moving averages, raising the chances of a near-term downside correction.

In the near term, however, an ascending trendline has been shielding the market from rapid downside moves. As a result, the bears must successfully break this through to encourage more aggressive selling toward the 1.2050 swings low of Mar. 13, 2021, where the medium support is located on the daily chart.
EURUSD Short term Trend: Ranging
As seen on the 4-hour chart, with 1.2050 support intact, the EURUSD has a neutral intraday bias and is expected to consolidate. A break of 1.2245 on the upside will restart the rise from 1.1704 to retest the 1.2350 high. The bullish case will be delayed if 1.2050 is broken.

The intraday bias will be shifted to the downside to expand the consolidation trend that began at 1.2350 with another dropping leg. In summary, in the short term, the EURUSD has a diminishing bullish bias. A close below 1.2150 could confirm more losses, while a close above 1.2245 could seek to reintroduce the previous uptrend.