EUR/USD Price Analysis: Inches closer to 1.1420-10 support zone
|- EUR/USD remains heavy near the lowest levels in 16 months.
- Bearish MACD, sustained trading below October’s trough allow sellers extra time.
- Five-month-old support line joins June 2020 peak to highlight 1.1420-10 as the key area.
- Monthly horizontal line guards immediate upside ahead of 20-DMA.
EUR/USD bears take a breather around the July 2020 levels following a two-day downtrend, taking rounds to 1.1450 during Friday’s early Asian session.
The major currency pair’s slump could be linked to the clear downside break of a horizontal area comprising multiple levels marked since early October. Also favoring sellers are the bearish MACD signals.
However, a convergence of a five-month-long descending trend line and high marked in June 2020 offer a tough nut a crack for the EUR/USD sellers around 1.1420-10 zone. The nearly oversold RSI conditions also highlight the importance of the said support region.
It’s worth noting that the 1.1400 threshold adds to the downside filter and allows counter-trend traders an extra opportunity for taking the risk.
On the other hand, corrective pullback remains less lucrative until the quote stay below one-month-old horizontal resistance, previous support around 1.1530.
Following that, the 20-DMA and a descending resistance line from September, respectively around 1.1585 and 1.1635, will be in focus.
Adding to the upside filters is the downward sloping trend line from May, close to 1.1670 at the latest.
EUR/USD: Daily chart
Trend: Further declines limited
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.