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Price Analysis: EUR/USD Oscillates At 1.0750; Megaphone Pattern Suggests Further Volatility
EUR/USD treads water after testing a two-day rise that has stalled recently. The combination of a megaphone chart shape and a steady RSI (14) suggests a continuance of sideways performance. 200-SMA bolsters the bullish filters within the one-week-old megaphone trend expansion pattern.
In the midst of Wednesday's lethargic hours, the EUR/USD pair is largely unchanged near 1.0740, as traders await additional evidence to support Tuesday's late bearish sentiment.
The major currency pair rebounded from 1.0706 the day before before reverting towards the weekly high near 1.0800. Thus, the quotation remained within a one-week megaphone chart formation, an expanding trend pattern.
In addition to the megaphone chart formation, the steady line of the RSI (14) and bullish MACD indications support the likelihood that the EUR/USD pair will continue to consolidate in a widening sideways range.
However, the 50% Fibonacci retracement level of the pair's January-February advances and the 200-Simple Moving Average (SMA) near 1.0760 and 1.0780, respectively, limit the EUR/USD pair's short-term upside.
Following that, the indicated megaphone's upper line, which was near 1.0810 at the time of publication, will be key for pair buyers to monitor.
Contrariwise, a break below the 61.8% Fibonacci retracement, often known as the golden ratio, near 1.0690 is required for the EUR/USD bears to maintain conviction. However, the trend-widening pattern's lower line, which is near to 1.0655, could threaten the quote's downside.
In the event that EUR/USD continues bearish above 1.0655, a slow decline toward the previous monthly low near 1.0480 cannot be ruled out.
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