The EUR/USD mid-day analysis shows that the intraday bias remains neutral and the outlook is unchanged. While there may be more consolidations above the temporary low of 1.0330, a further decline is expected as long as the resistance at 1.0609 holds. If there is sustained trading below the key fibonacci level of 1.0404, this could have a larger bearish implication and target the next level at 161.8% projection of 1.1213 to 1.0760 from 1.0936 at 1.0203. However, a firm break of 1.0609 would confirm a short-term bottoming, turning the bias back to the upside for 1.0760 support turned resistance first.
Looking at the bigger picture, the immediate focus is now on the 50% retracement of 0.9534 (2022 low) to 1.1274 at 1.0404. A strong rebound from this level would indicate that the price actions from 1.1273 (2023 high) are just a medium-term consolidation pattern. However, if there is a sustained break of 1.0404, there is a higher chance that the whole uptrend from 0.9534 has reversed. This could lead to a target of 61.8% retracement at 1.0199 first, with a firm break there targeting the 0.9534 low again.
In summary, the EUR/USD pair is currently in a consolidation phase with a potential for further decline if key resistance levels are not broken. Traders should pay close attention to the levels mentioned to gauge the direction of the currency pair in the coming sessions.
