FX.co ★ Technical analysis of EUR/USD for September 07, 2022

Euro parity still in play ahead of decisive US inflation data, for that common currency came within whisker of $1 this week. Right now, the EUR/USD pair is still moving around the price of 1.0000. The currency pair EUR/USD is trading below the resistance levels of 1.0064, 1.0116 and 1.0187.

The euro to US dollar (EUR/USD) rate has fallen about 1.75% year-to-date to trade around 1.0000. The decline is comparable to losses last seen for seven years, when the European Central Bank unleashed its massive stimulus programme.

The EUR/USD pair continues to move downwards from the level of 1.0064, which represents the double top in the hourly chart. Yesterday, the pair dropped from the level of 1.0064 to the bottom around 1 USD.

Today, the first resistance level is seen at 1.0064 followed by 1.0138, while daily support is seen at the levels of 0.9953 and 1.0116.

According to the previous events, the EUR/USD pair is still trading between the levels of 1.0064 and 0.9865. Hence, we expect a range of 199 pips in coming hours (1.0064 - 0.9865).

The first resistance stands at the price of 1.0064, therefore if the EUR/USD pair fails to break through the resistance level of 1.0064, the market will decline further to 0.9941.

This would suggest a bearish market because the RSI indicator is still in a negative area and does not show any trend-reversal signs. The pair is expected to drop lower towards at least 0.9941 in order to test the second support (0.9865).

The US Dollar and the Euro are two of the most prominent and well-known currencies in the world. The Euro versus US Dollar (EUR/USD) currency pair has the largest global trading volume, meaning it is the world's most-traded currency pair. Whether you find the instrument easy or difficult to trade on, it's not a pair that many traders neglect, due to its daily volatility and price movement.

Thus, the market is indicating a bearish opportunity below the above-mentioned support levels, for that the bearish outlook remains the same as long as the 100 EMA is headed to the downside.

Today, resistance is seen at the levels of 1.0064, 1.0116 and 1.0187. So, we expect the price to set below the strong resistance at the levels of 1.0064, 1.0116 and 1.0187; because the price is in a bearish channel now. The RSI starts signaling a downward trend. Consequently, the market is likely to show signs of a bearish trend. Thus, it will be good to sell below the level of 1.0064 with the first target at 0.9941 and further to 0.9865 in order to test the daily support. If the GBP/USD pair is able to break out the daily support at 0.9865, the market will decline further to 0.9800 to approach support 3 in coming hours or days. However, the price spot of 1.0064 and 1.0116 remains a significant resistance zone. Therefore, the trend is still bearish as long as the level of 1.0116 is not breached.