EUR/USD Price Analysis: Rising wedge, bearish MACD signals highlight 1.0420 support
|
- EUR/USD prints a three-day downtrend inside a bearish chart formation.
- Downbeat MACD signals and steady RSI adds strength to the bearish bias.
- 200-DMA adds to the downside filters, 1.0615 is the key hurdle.
EUR/USD holds lower ground near 1.0460 as bears keep the reins for the third consecutive day despite the market’s inaction during early Wednesday.
In doing so, the major currency pair trades inside a one-month-old rising wedge bearish chart formation.
Also keeping the EUR/USD sellers hopeful are downbeat MACD signals and the steady RSI line, placed at 14.
However, a clear downside break of the 1.0420 support, as well as the sustained trading below the 200-DMA level surrounding 1.0355, becomes necessary for the EUR/USD bears to dominate further.
Following that, the theoretical target of 0.9760 and November’s low of 0.9730 could gain the market’s attention.
Alternatively, recovery remains elusive unless the EUR/USD pair remains below the 1.0600 threshold.
Even so, a convergence of the late June swing high and upper line of the stated wedge, around 1.0615, appears crucial resistance to watch during the quote’s advances past 1.0600.
In a case where EUR/USD stays firmer past 1.0600, the bulls won’t hesitate to challenge May’s peak surrounding 1.0790.
To sum up, EUR/USD has interesting chart pattern to keep sellers hopeful despite the latest sluggish moves.
EUR/USD: Daily chart
Trend: Further downside 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.