EUR/USD Price Analysis: Impending bear cross, weekly resistance favor sellers below 1.2200
|- EUR/USD remains pressured despite Friday’s bounce off 1.2100.
- Impending bearish cross, weekly descending trend line raise bars for buyers.
- Weekend comments from US Treasury Secretary Yellen keep sellers hopeful.
EUR/USD stays depressed below 1.2200, around 1.2165 by the press time, amid a sluggish start to the week. In doing so, the currency major pair remains below a one-week-old falling trend line amid a looming bearish cross of the 100-SMA to 50-SMA.
Even if MACD teases bull’s entry, comments from US Treasury Secretary Janet Yellen, favoring Fed rate hike, restrict EUR/USD buyers cheering Friday’s negative surprise from the US employment report for May.
It should, however, be noted that horizontal lines from May 28 and 13, respectively around 1.2130 and 1.2100, test the quote’s short-term downside.
However, a clear break below the 1.2100 threshold won’t hesitate to direct EUR/USD bears to May 13 low near 1.2050 ahead of highlighting the 1.2000 round figure.
Meanwhile, the aforementioned resistance line near 1.2170 guards the quote’s immediate upside ahead of convergence of the key SMAs near 1.2195.
During the EUR/USD pair’s run-up beyond 1.2195, the 1.2200 psychological number and 1.2245 can hinder the rally targeting the previous month’s top near 1.2265.
EUR/USD four-hour chart
Trend: Further weakness expected
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