EUR/USD Price Analysis: Fades bounce off 50-day SMA above 1.2100
|- EUR/USD sellers probe intraday low while defying the previous day’s U-turn from 50-day SMA.
- Bearish MACD, failures to keep recovery moves from the key SMA favor sellers.
EUR/USD teases intraday low of 1.2137 amid the recent fall during the initial Asian session on Tuesday. The major currency pair marked the heaviest losses in over a week on Monday before taking a U-turn from 50-day SMA. The following recovery moves, however, fade near 1.2145 off-late.
While considering the pair’s failures to keep the bounce off key moving average, coupled with the bearish MACD, EUR/USD is up for further weakness.
However, a clear break of 50-day SMA, currently around 1.2120, becomes necessary for the sellers to keep the helm. Following that, the 1.2100 threshold will be in focus.
In a case where the EUR/USD bears dominate past-1.2100, a seven-week-old horizontal area near 1.2060/50 will be the key.
Alternatively, EUR/USD buyers will look for an entry on a daily break above the 21-day SMA level of 1.2191.
It’s worth mentioning that December 17 top near 1.2280 and the monthly high around 1.2350 will lure the EUR/USD bulls past-21-day SMA.
EUR/USD daily chart
Trend: Sideways
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