EUR/USD technical analysis: Rejected at 200-hour MA in Asia
|- EUR/USD has charted a bearish lower high at the 200-hour momving average resistance.
- A breakout on USD/CNH could yield a bigger drop in EUR/USD.
EUR/USD picked up a bid around 1.1159 in early Asia, but failed to take out the 200-hour moving average (MA) resistance at 1.1173 and is now trading at 1.1165.
The currency pair has essentially established a second bearish lower high, having ended the corrective bounce from the May 23 low of 1.1107 at 1.1215 on Monday.
The path of least resistance, therefore, is to the downside. The currency pair may drop well below the recent low of 1.1107 if the bull flag seen on USD/CNH’s daily chart is breached on the higher side. That would pave way for a break above 7.00, leading to a broad-based USD rally.
The EUR/USD’s outlook would turn bullish if and when the pair finds acceptance above the 50-day moving average, currently at 1.1220.
Hourly chart
Trend: Bearish
Pivot points
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.