EUR/USD Price Analysis: Fades bounce off weekly support around 1.0550
|- EUR/USD remains pressured after taking a U-turn from one-week high.
- Failures to stay beyond 50-SMA, receding bullish bias of MACD hint at further declines.
- Bears aim for the latest multi-month low unless crossing 100-SMA.
EUR/USD stays depressed at around 1.0540 during Friday’s initial Asian session, after the bear’s return to the table the previous day.
The major currency pair’s failures to keep the post-Fed rebound beyond the short-term key SMAs join the receding bullish bias of the MACD to favor sellers.
That said, the latest weakness aims for an upward sloping trend line from April 28, surrounding 1.0510, ahead of challenging the 1.0500 threshold.
In a case where the EUR/USD fails to rebound from the 1.0500, it can drop to the previous month’s bottom, also the lowest level since 2017, around 1.0470.
It should be noted, however, that the 61.8% Fibonacci Expansion (FE) of the pair’s moves between April 25 and May 05, around 1.0425, will challenge the EUR/USD bears afterward.
Meanwhile, recovery moves may initially aim for the 50-SMA and the recent swing high, respectively around 1.0560 and 1.0640.
However, EUR/USD bulls will remain cautious until witnessing a clear break of the 100-SMA, close to 1.0690 at the latest.
EUR/USD: Four-hour chart
Trend: Bearish
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