EUR/USD Price Analysis: Struggles to defend 21-DMA breakout
|- EUR/USD fades bounce off short-term key support, remains pressured of late.
- Steady RSI, sluggish MACD line also challenge recovery moves.
- 50-DMA adds to the upside filters, three-week-old support line in focus.
EUR/USD retreats towards 1.1300 after the Fed Minutes-led losses challenged the 21-DMA breakout. That said, the quote drops to 1.1309 during Thursday’s Asian session.
As the MACD line teases a bear-cross to the signal line, as well as steady RSI, the latest weakness is likely to continue.
However, a clear downside break of the 21-DMA level of 1.1300 becomes necessary for the bears to aim for an ascending support line stretched from mid-December 2021, around 1.1280 by the press time.
Also acting as the key short-term support is a six-week-long rising trend line near 1.1260, a break of which will direct the quote towards the last year’s bottom of 1.1186.
Alternatively, sustained trading beyond the 1.1300 threshold will direct the EUR/USD prices towards the 50-DMA level surrounding 1.1360.
Even so, the pair buyers will remain cautious until the quote rises past the horizontal area established since mid-November, near 1.1385.
EUR/USD: Daily chart
Trend: Further weakness expected
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