- EUR/USD remains sidelined after breaking short-term important support.
- Bearish MACD signals, steady RSI favor sellers targeting previous resistance line.
- Convergence of 100-EMA, 200-EMA appears a tough nut to crack for EUR/USD bears.
EUR/USD licks its wounds around 1.0790 after a two-day pullback from the highest levels since April 2022. Even so, the major currency pair defends the previous day’s break of the 21-day Exponential Moving Average (EMA) and an upward-sloping support line from early November 2022.
Not only the sustained downside break of the previous key support confluence but the bearish MACD signals and steady RSI (14) also keeps the EUR/USD sellers hopeful.
That said, a seven-week-old resistance-turned-support line near 1.0660 appears the immediate target for the EUR/USD bears to watch before aiming for the 1.0500 support confluence including the 100-EMA and 200-EMA.
It’s worth noting that the previous monthly low near 1.0480 acts as an extra filter towards the south before welcoming the EUR/USD bears.
On the flip side, the 21-day EMA and the three-month-old previous support line challenge the EUR/USD bulls near 1.0820.
Following that, multiple levels near 1.0900 and 1.0920 could test the pair’s further upside before highlighting the latest peak surrounding 1.1035.
In a case where EUR/USD remains firmer past 1.1035, the odds of witnessing a rally toward the March 2022 high near 1.1185 can’t be ruled out.
Overall, EUR/USD remains on the bear’s radar despite the latest inaction.
EUR/USD: Daily chart
Trend: Further downside expected
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