EUR/USD Price Analysis: On the way to 1.1280 key support
|- EUR/USD remains pressured after breaking 200-SMA for the first time in two weeks.
- Bearish MACD signals, weekly descending trend line also keep sellers hopeful.
- Two-month-old support line challenges sellers, 61.8% Fibonacci retracement offers immediate support.
EUR/USD fails to cheer greenback weakness, stays depressed around 1.1310 during the initial Asian session on Friday.
While portraying the sober mood of the major pair traders, the quote remains below 200-SMA for the first time in a fortnight amid bearish MACD signals, suggesting further declines.
However, the 61.8% Fibonacci retracement (Fibo.) of November-January upside and a two-month-long rising support line, respectively near 1.1300 and 1.1280, become the key challenges for the EUR/USD sellers.
Should the quote breaks 1.1280, it becomes vulnerable to retest the year 2021 bottom of 1.1186. During the fall, 1.1230 and 1.1200 may act as buffers.
Alternatively, a clear upside break of the 200-SMA level surrounding 1.1330 needs validation from the weekly resistance line, near 1.1360 by the press time, to convince short-term EUR/USD buyers.
Even so, December’s peak of 1.1386 and the 1.1435-40 area may test the pair’s further upside ahead of directing it to the monthly top around 1.1485.
EUR/USD: Four-hour chart
Trend: Further weakness expected
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