EUR/USD Price Analysis: Bulls eye a test of bear's commitments near 1.0700

EUR/USD Price Analysis: Bulls eye a test of bear’s commitments near 1.0700

Time Stamp: March 5, 2023 5:25 PM
Source Node: 1993710

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  • EUR/USD bears are lurking in key supply areas.
  • 1.0700 is key while trendline support holds up. 

EUR/USD was supported on Friday as the US Dollar fell and was headed for the largest weekly loss since mid-January against a basket of six major currencies. However, it will be a busy week for the greenback and that leaves the technical outlook for the bulls thwarted with danger as they balance on a tightrope as the following illustrates: 

EUR/USD H4 and daily charts

The 40-hour chart sees the price testing resistance in the upper quarter of the 1.06 area but on the backside of a prior downtrend. Nevertheless, while there are prospects of a move to test the 1.07s, the daily charts show this as an area of potential supply:

While the day ahead could see a continuation of Friday’s given the strong bullish close, the trendline support has yet to be tested which leaves scope for a move by the bears as we head over to key event risks this week.

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