EUR/USD Price Analysis: Looks set to revisit sub-1.2000 area
|- EUR/USD battles the previous day’s pullback from seven-week high.
- Downside break of 61.8% Fibonacci retracement, MACD conditions favor further selling.
- Horizontal area from early March, two-week-old rising support line will test the bears.
- March’s peak adds to the upside barrier, bearish Doji on multi-day top back the sellers.
EUR/USD remains pressured around 1.2030, extending the pullback from a multi-day top, during Wednesday’s Asian session. In doing so, the major currency pair justifies the bearish Doji candlestick on the four-hour (4H) formation portraying the latest high.
Additionally, the pair’s downside break of 61.8% Fibonacci retracement of late February to March-end downside as well as MACD’s recent turn in favor of the sellers also back the EUR/USD bears.
Hence, the recent losses are likely to mount as short-term sellers aim to revisit the horizontal area established from March 02, around 1.1990.
However, the pair’s further weakness will be tamed by an ascending trend line from April 06, near 1.1985 by the press time.
Meanwhile, corrective pullback beyond the 61.8% Fibonacci retracement level of 1.2037 will not be an open invitation to the EUR/USD buyers as the recent peak, as well as the one marked in early March, respectively around 1.2080 and 1.2115, be the tough resistances.
EUR/USD four-hour chart
Trend: Further weakness expected
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.