EUR/USD Price Analysis: Bulls need 1.1790 breakout to retake controls
|- EUR/USD struggles to extend the strongest run-up in six weeks.
- Monthly resistance line, 50-DMA challenge upside amid bearish MACD signals.
- Multiple stops test sellers targeting 61.8% Fibonacci Expansion level.
EUR/USD again fades upside momentum below 1.1750, retreats to 1.1738 at the latest, after rising the most in six weeks. That said, the quote seesaws in a choppy range as Asian traders begin Friday’s tasks.
Although oversold RSI triggered a heavy rebound of the EUR/USD prices from the lowest levels since August 20, the bulls need validation from a three-week-old downward sloping trend line and 50-DMA. Also challenging the run-up are the bearish MACD signals and recently steady RSI.
Hence, the quote is up for a pullback towards short-term horizontal support near 1.1700.
However, any further weakness will be questioned by the yearly low of 1.1664, a break of which will direct the EUR/USD bears towards the 61.8% Fibonacci Expansion (FE) of June 15 to August 20 fall, followed by the recovery moves to early September, surrounding 1.1610.
Alternatively, a clear break of the 1.1790 key hurdle, comprising the stated resistance line and 50-DMA, will quickly direct the quote to 1.1850.
In a case where EUR/USD bulls keep reins past 1.1850, the double tops near 1.1910 will be the key challenge for them.
EUR/USD: Daily chart
Trend: Further weakness 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.