The EURUSD pair plummeted to 0.9729 on Thursday, finishing the week marginally lower above the 0.9900 threshold. The United States Federal Reserve (Fed) unexpectedly boosted the US Dollar mid-week by surprising market players with a hawkish monetary policy stance. In this article, we’ll detail EUR/USD Weekly Technical Forecast for Week 45, 2022.
EURUSD technical outlook
The EURUSD pair has spent the week below parity and posted a lower low and a lower high. A sign that bears are back. Profit-taking ahead of the weekend helped the pair to bounce on Friday, but the dominant bearish trend remains firmly in place.
The weekly chart shows that the pair keeps trading below a firmly bearish 20 Simple Moving Average (SMA), which remains way below the longer ones. At the same time, the 100 SMA is crossing below the 200 SMA, both at around 1.1270. Finally, technical indicators have resumed their declines within negative levels, skewing the risk to the downside.
In the daily chart, on the other hand, a bearish continuation is in doubt. The EURUSD pair recovered above a directionless 20 SMA, which provides immediate support at around 0.9830, and seems poised to extend its recovery towards the next relevant dynamic resistance level, a bearish 100 SMA currently at around 1.0050. Meanwhile, the Momentum indicator is turning marginally higher within neutral levels, while the Relative Strength Index (RSI) has picked up upward momentum and hovers around 53.
Strong resistance comes at parity first, followed by the mentioned daily 100 SMA, currently at around 1.0050. The next level to watch is 1.0088, October’s monthly high. The first support level is 0.9870, followed by the 0.9790 price zone. Below the latter, EURUSD can extend its decline towards the 0.9700/20 price zone.
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