empty
12.07.2022 06:29 PM
EUR/USD rejected by 1.0000 major support. What now?

The EUR/USD pair was trading in the red at 1.0062 on the H1 chart at the time of writing. The currency pair rebounded as the Dollar Index retreated in the short term. DXY's temporary drop was expected after its strong rally.

Today, the currency pair dropped as much as the 0.9999 level where it has found support. Now, it has rebounded even if the German ZEW Economic Sentiment came in at -53.8 points below -40.6 points expected, while the Euro-zone ZEW Economic Sentiment was reported lower at -51.1 points versus -39.0 forecasted.

On the other hand, the IBD/TIPP Economic Optimism and the NFIB Small Business Index came in worse than expected. Tomorrow, the US inflation data could be decisive. The CPI and the Core CPI could bring high volatility and sharp movements.

EUR/USD Rebound!

This image is no longer relevant

As you can see on the h1 chart, the rate found support right on the 1.0000 psychological level and now it has challenged the 1.0071 static resistance. The descending pitchfork's lower median line (lml) represents a dynamic resistance.

As long as it stays under these levels, the bias remains bearish. False breakouts could announce a new sell-off. After its massive drop, a temporary rebound was natural.

EUR/USD Outlook!

The EUR/USD pair could come back down if it makes only false breakouts through the 1.0071 and above the lower median line (lml).

A valid breakout above the 1.0071 and above the lower median line may signal further growth towards the 1.0161 area. This scenario could bring some long opportunities in the short term.

Ralph Shedler,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

GBP/JPY. Analysis and Forecast

The GBP/JPY pair continues to gain positive momentum for the second day in a row. From a technical standpoint, GBP/JPY has once again demonstrated resilience below the 200-day Simple Moving

Irina Yanina 14:05 2025-06-04 UTC+2

Forecast for EUR/USD on June 4, 2025

On Tuesday, the EUR/USD pair rebounded from the 76.4% retracement level at 1.1454, reversed in favor of the U.S. dollar, and began a downward move. Today, the pair consolidated below

Samir Klishi 14:02 2025-06-04 UTC+2

Forex forecast 04/06/2025: EUR/USD, GBP/USD, USD/CAD, Oil and Bitcoin

Useful links: My other articles are available in this section InstaForex course for beginners Popular Analytics Open trading account Important: The begginers in forex trading need to be very careful

Sebastian Seliga 12:05 2025-06-04 UTC+2

Forecast for GBP/USD on June 4, 2025

On the hourly chart, the GBP/USD pair showed no interest in movement on Tuesday. Throughout the day, bulls and bears launched weak attacks, none of which led to anything significant

Samir Klishi 10:05 2025-06-04 UTC+2

Technical Analysis of Intraday Price Movement of Silver Commodity Instrument, Wednesday June 04, 2025.

From what we can see on the 4-hour chart of the Silver commodity instrument, the Stochastic Oscillator indicator appears to be in Overbought condition so that in the near future

Arief Makmur 06:22 2025-06-04 UTC+2

Technical Analysis of Intraday Price Movement of AUD/JPY Cross Currency Pairs, Wednesday June 04, 2025.

Although on the 4-hour chart AUD/JPY has the potential to be corrected to weaken, which is confirmed by the condition of the Stochastic Oscillator indicator which is in an Overbought

Arief Makmur 06:22 2025-06-04 UTC+2

EUR/USD Forecast for June 4, 2025

Yesterday's inflation data from the Eurozone slightly slowed the euro's growth amid a continued stock market rally (Dow Jones +0.51%). However, considering the market's growth amid several challenges—including China's

Laurie Bailey 05:21 2025-06-04 UTC+2

GBP/USD Forecast for June 4, 2025

Yesterday, as the US dollar index strengthened by 0.53%, the British pound fell by 27 pips. However, this decline could already be offset during today's Asian session, as yesterday's

Laurie Bailey 05:21 2025-06-04 UTC+2

AUD/USD Forecast for June 4, 2025

The Australian dollar's move toward the price channel line at 0.6548 was delayed yesterday due to a "glitch" in the US dollar's downtrend (the index strengthened by 0.53%), but overall

Laurie Bailey 05:21 2025-06-04 UTC+2

EUR/GBP Forecast for June 4, 2025

Yesterday, the euro sharply reversed down against the pound from the strong resistance level of 0.8448. At the same time, the Marlin oscillator on the daily timeframe also turned downward

Laurie Bailey 05:21 2025-06-04 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.