EUR/USD Price Analysis: 1.1100/05 becomes the key upside barrier
|- EUR/USD remains below 21-day SMA, nears 50% Fibonacci retracement.
- A confluence of 50-day SMA, 38.2% Fibonacci retracement and five-week-old descending trend line offers the key resistance.
- 61.8% Fibonacci retracement, 1.0990/95 can please sellers during further declines.
EUR/USD recovers the previous day’s losses while trading around 1.1060 during early Tuesday. The pair recently took a U-turn from 21-day SMA but failed to stay longer below 50% Fibonacci retracement of its October-December 2019 upside.
With this, prices are likely to again challenge 21-day SMA level of 1.1085. However, 50-day SMA, 38.2% Fibonacci retracement and a short-term falling resistance line could keep challenging the buyers around 1.1100/05.
In a case where prices manage to provide a daily closing beyond 1.1105, January 16 high near 1.1175 and 1.1200/05 can offer intermediate halts during the run-up to December 2019 monthly top close to 1.1240.
Alternatively, 61.8% Fibonacci retracement near 1.1017, followed multi-week-old horizontal support around 1.0995/90, can limit the pair’s further declines.
EUR/USD daily chart
Trend: Pullback expected
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.