EUR/USD Price Analysis: Corrective pullback battles weekly resistance near 1.2000
|- EUR/USD fades bounces off three-week-old horizontal support area.
- Sustained trading below 100-SMA, downbeat MACD keep sellers hopeful.
- 200-SMA adds to the downside filters, bumpy road to the north.
EUR/USD keeps rejecting the downside pressure from an immediate resistance line around short-term horizontal support, close to the 1.2000 threshold, amid early Asian session trading on Thursday.
The receding strength of the bearish MACD signals and the recent bounce off the key horizontal support keep EUR/USD buyers hopeful of breaking the adjacent resistance line close to 1.2010. However, sustained trading below 100-SMA and multiple hurdles to the north test the currency major pair’s short-term upside.
Among the resistances, 1.2055 and 1.2075-80 can immediately follow the 100-SMA level of 1.2040 to test the EUR/USD bulls. Also challenging further advances is the 1.2100 threshold and the previous month’s top near 1.2150.
Meanwhile, a downside break of 1.1990 will quickly fetch the quote to 1.1950 but a 200-SMA level of 1.1931 could test EUR/USD sellers afterward.
Overall, the EUR/USD prices remain vulnerable to the further downside but intermediate jitters can’t be ignored.
EUR/USD four-hour 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.