EUR/USD Price Analysis: Further downside needs validation from 1.0480
|- EUR/USD remains pressured after reversing from five-month high, retreats from intraday high of late.
- Clear downside break of one-week-old ascending trend line, bearish MACD signals favor sellers.
- Double tops near 1.0480 precede 100-SMA to challenge bears.
EUR/USD pares intraday gains around 1.0500 during early Tuesday, fading the bounce off three-week-old horizontal support.
In doing so, the major currency pair also justifies the bearish MACD signals and the previous day’s downside break of the weekly support line, now resistance near 1.0550.
However, the double tops surrounding 1.0480 challenge the EUR/USD pair’s latest weakness. Also acting as a downside filter is the 100-SMA level surrounding 1.0385.
Should the quote stay bearish past 1.0385, the odds of witnessing a slump toward the 200-SMA level surrounding 1.0385 can’t be ruled out, which in turn holds the key for the bear’s dominance.
On the contrary, recovery moves need to stay firmer beyond the previous support line, close to 1.0550.
Even so, an ascending trend line from early November, near 1.0635 at the latest, could challenge the EUR/USD bulls.
It should be noted that the EUR/USD pair’s successful run-up beyond 1.0635 won’t hesitate to challenge the mid-2022 peak surrounding 1.0785.
Overall, EUR/USD is likely to witness a pullback unless crossing the 1.0635 hurdle. Though, the buyers could remain hopeful beyond 1.0385.
EUR/USD: Four-hour chart
Trend: Further downside expected
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