EUR/USD Price Analysis: Further downside hinges upon 1.1845 break
|- EUR/USD bears take a breather after three-day fall, near four-month-old support.
- Monthly resistance line, 10-DMA guard immediate upside amid bearish MACD.
- Sellers may aim for yearly low on further dominance, bulls have a bumpy road to return.
EUR/USD remains sidelined around 1.1855-60, having dropped to the key horizontal support, amid the early Asian session on Thursday. The major currency pair declined for the last three consecutive days before the recent consolidation from the two-month low.
Bearish MACD and sustained trading below 10-day SMA (DMA), as well as a descending trend line from early June, keeps EUR/USD sellers hopeful.
However, a clear break of the 1.1845 support, comprising lows marked in early March and late June, becomes necessary for them to keep the reins.
Following that, multiple stops during late March and early April, surrounding 1.1765-60, can offer an intermediate halt during the EUR/USD south-run to the yearly low of 1.1704.
Meanwhile, the corrective pullback will be initially questioned by the short-term resistance line, around 1.1890, before the 10-DMA level of 1.1905 tests the EUR/USD buyers.
Also acting as the key upside hurdle is the latest swing top near 1.1975 and 200-DMA, close to the 1.2000 psychological magnet.
Overall, EUR/USD bears seem tired but the bulls have multiple challenges before retaking controls.
EUR/USD daily chart
Trend: Bearish
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