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Overall, the EU is facing a decline below the 1.075 breakout support during the Asian session on Wednesday. The main reason is that the US Dollar increased due to expectations that the Federal Reserve will extend higher interest rates, which supported the USD and was detrimental to the EUR. Fundamentally and technically the market is showing weakness so we can expect a bearish scenario at the moment.
From the chart, it can be seen that the momentum is still bearish, a slowdown around the 1.0742 area for a few hours could drag the pair to recover during the bear market phase. But it is difficult to last long when approaching the resistance level when the EMA 34.89 technical indicator still favors selling, because the overall context of the currency pair is still negative. Given this outlook, further weakness in EUR/USD can be considered possible in the medium term.
