EUR/USD Price Analysis: Euro bears eye 1.0860 ahead of German inflation, Fed Chair Powell’s speech
|- EUR/USD takes offers to refresh intraday low, pokes three-week-old rising support line.
- Bearish MACD signals, broad US Dollar strength favor Euro sellers targeting 200-EMA support.
- Preliminary readings of Germany’s inflation data, Fed Chair Powell’s speech will be crucial for clear directions.
EUR/USD extends the previous day’s downturn towards piercing a three-week-old rising support line, around 1.0895 by the press time, as markets prepare for German inflation and Federal Reserve (Fed) Chairman Jerome Powell’s speech on early Thursday.
Apart from the pre-event anxiety, bearish MACD signals and the Euro pair’s sustained reversal from the previous support line from June 07, now resistance around 1.1010, also keeps the EUR/USD sellers hopeful.
However, a clear break of the aforementioned three-week-long rising support line, close to 1.0900 at the latest, becomes necessary for the Euro bear’s conviction.
Following that, the 200-Exponential Moving Average (EMA) level of near 1.0860 can prod the EUR/USD bears before directing them to the key support line stretched from May 31, surrounding 1.0790 as we write.
Meanwhile, a corrective bounce in the EUR/USD price needs to cross a downward-sloping resistance line from the last Thursday, around 1.0950 at the latest, to recall the Euro bulls.
Even so, a convergence of the monthly high and the support-turned-resistance line, close to 1.1010-15, will be a tough nut to crack for the EUR/USD bulls afterward.
EUR/USD: Four-hour chart
Trend: Further downside 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.