EUR/USD Price Analysis: Bounces off 50-SMA but stays bearish below 1.0440 hurdle
|- EUR/USD pares intraday losses while also keeping bears hopeful.
- Downside break of two-week-old support line, bearish oscillators favor sellers.
- Fortnight-long resistance line, monthly high adds to the upside filters.
EUR/USD licks its wounds near 1.0360, off the daily low surrounding 1.0340, as traders seek more clues to extend the early-day fall heading into Monday’s European session.
The major currency pair’s latest rebound could be linked to a U-turn from the 50-SMA, currently around 1.0350 by the press time.
However, bearish MACD signals and a clear downside break of the two-week-old ascending trend line, close to 1.0400 at the latest, keeps the EUR/USD pair sellers hopeful. Additionally, the steady RSI (14) also defends the bears despite the latest corrective bounce.
Even if the quote crosses the 1.0400 support-turned-resistance, a downward-sloping resistance line from November 15, near 1.0440, will be crucial to challenge the pair buyers.
Following that, the monthly high near 1.0480 could also act as an upside filter before portraying the rally targeting the late June peak surrounding 1.0615.
On the flip side, a break of the 50-SMA support level, near 1.0350 as we write, could renew the downside momentum.
In that case, the previous week’s low near 1.0220 and the early November’s swing high near 1.0100 should gain the market’s attention ahead of the 200-SMA level surrounding 1.0055.
EUR/USD: Four-hour chart
Trend: Further downside expected
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