EUR/USD Price Analysis: 100-SMA probes buyers amid sluggish start to the key week

EUR/USD picks up bids to print mild gains while extending the previous weekly recovery.
100-SMA, one-month-old descending resistance line restrict immediate upside.
Sluggish MACD signals join sustained trading below two-month-long horizontal hurdle, 200-SMA to keep bears hopeful.

Anil Panchal FXStreet

EUR/USD rebound pokes the 100-SMA hurdle around 1.0650 heading into Monday’s European session.

The major currency pair recovered from a two-month low in the last week on broad US Dollar weakness, as well as the hawkish concerns about the European Central Bank (ECB). However, the cautious mood ahead of the top-tier catalysts from the US and Europe seems to test the momentum traders of late.

Also read: EUR/USD grinds lower towards 1.0600 ahead of Eurozone Retail Sales, focus on Fed Chair Powell, US NFP

That said, a one-month-old descending resistance line, near 1.0660 by the press time, acts as an extra filter towards the north, apart from the immediate 100-SMA hurdle of 1.0650.

It’s worth noting that the EUR/USD pair’s run-up beyond the 1.0650 hurdle isn’t an open invitation for the quote’s rally as the 200-SMA and a two-month-long horizontal resistance area could check the pair’s further upside, respectively near 1.0745 and 1.0760-65.

Should the EUR/USD pair portray another defeat from the key SMA hurdle, a one-week-old ascending support line near 1.0600 will be crucial to watch as it holds the gate for the pair’s slump toward early 2023 low near 1.0480. Adding strength to the 1.0480 support is November 2022’s top.

In a case where EUR/USD drops below 1.0480, the late November low near 1.0290 and the monthly bottom of 1.0222 will be in focus.

Overall, EUR/USD is likely to recover but the upside room remains limited.

EUR/USD: Four-hour chart

Trend: Limited upside expected

Additional important levels

Overview
Today last price	1.0645
Today Daily Change	0.0010
Today Daily Change %	0.09%
Today daily open	1.0635

Trends
Daily SMA20	1.0663
Daily SMA50	1.0726
Daily SMA100	1.0496
Daily SMA200	1.0329

Levels
Previous Daily High	1.0639
Previous Daily Low	1.0588
Previous Weekly High	1.0692
Previous Weekly Low	1.0533
Previous Monthly High	1.1033
Previous Monthly Low	1.0533
Daily Fibonacci 38.2%	1.0619
Daily Fibonacci 61.8%	1.0608
Daily Pivot Point S1	1.0603
Daily Pivot Point S2	1.057
Daily Pivot Point S3	1.0552
Daily Pivot Point R1	1.0653
Daily Pivot Point R2	1.0671
Daily Pivot Point R3	1.0703

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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