EUR/USD Price Analysis: Remains pressured towards 100-SMA, fortnight-old support
|- EUR/USD stays depressed after the first positive week in six.
- Bearish MACD signals, failure to cross five-week-old resistance line keep sellers hopeful.
- Short-term support line holds the key to further weakness, 200-SMA adds to the upside filters.
EUR/USD begins the trading week on a back foot around 1.1045, after snapping the five-week downtrend.
The major currency pair’s latest weakness takes clues from Thursday’s failure to cross a downward sloping resistance line from February, as well as bearish MACD signals.
However, the 100-SMA and a two-week-old rising trend line, respectively around 1.1030 and 1.0990, challenge short-term downside.
In a case where EUR/USD prices drop below 1.0990, the odds of witnessing the quote’s south-run towards the mid-month bottom surrounding 1.09000 can’t be ruled out.
Meanwhile, recovery moves will initially aim for the aforementioned resistance line, at 1.1105 by the press time.
Following that, the 200-SMA level of 1.1200 will be crucial to watch for the EUR/USD pair’s further upside momentum.
In a case where the pair rises past 1.1200, a horizontal area from early February, near 1.1270-80 will challenge the bulls.
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.