EUR/USD Signaled 'Bearish' At Last Week's Close


 Ending trading at the end of last week, the US dollar traded slightly firmer after moving weakly since mid-March.

Analysts, however, see the situation as only temporary following the banking crisis that is hitting the market and is expected to continue to put pressure on the US dollar.

In addition to the profit taking factor (profit taking) expected to occur at the end of the week, the United States (US) manufacturing and services PMI data that was published positively also supported the strengthening of the US dollar in the final sessions.

The situation has ended the series of price increases on the chart of the EUR/USD currency pair which had previously maintained an increase for 5 consecutive days.

On Thursday, the price, which had reached a high of 1.09300 (7-week high), then started to show a decline again.

Continuing on Friday, the price has moved below the Moving Average 50 (MA50) level on the 1-hour time frame on the EUR/USD chart, becoming an early sign of a bearish trend.

Next, the price dropped almost touching the 1.07000 level before rebounding and closing the trade in the last session at the 1.7600 level.

If the declining pattern is successfully maintained, the price is likely to move past the 1.07000 level before heading towards around 1.06000.

If the bearish price trend is clear, the price can reach the support zone at 1.05000.

However, if the US dollar trades weakly again like in the previous weeks, the price will rise again past the 1.08000 level.

Next, last week's high at 1.09300 will be overcome before the price's latest target is towards 1.1000 to record an 8-week high.