EUR/USD – Major downtrend pauses for consolidation, parity level back in focus*

EUR/USD edged higher early Friday as traders booked partial profits at the week’s close, following a sharp three-day decline that pushed the pair to its lowest levels in over two years.

The broader bearish trend appears poised for a brief consolidation above the critical support at 1.0200. This level, representing the 61.8% Fibonacci retracement of the 0.9535 to 1.1275 rally (September 2022 – July 2023), serves as a key barrier before the psychological parity level, which has emerged as the next significant target.

Resistance around the 1.0350 zone, marked by the daily Tenkan-sen and a prior low, is expected to hold, maintaining the short-term bearish outlook.

Technical indicators underscore the downside bias, with strong negative momentum, a fully bearish moving average setup, and price action weighed down by a thick, descending daily Ichimoku cloud.

A sustained break above 1.0430 (daily Kijun-sen) would challenge the bearish narrative, opening the door for a more substantial correction.

Res: 1.0345; 1.0405; 1.0430; 1.0460
Sup: 1.0224; 1.0200; 1.0150; 1.0100