EUR/USD Price Analysis: 1.1700-1685 area can test bears

EUR/USD bears catch a breather around low marked on November 05, 2020.
Bearish MACD, sustained trading below 200-day SMA favor sellers.
Multiple bottoms since late-July add to the downside filters.
Five-week-old falling trend line also becomes important resistance.

Anil Panchal FXStreet

EUR/USD picks up bids to 1.1722 while consolidating the recent losses during Wednesday’s Asian session. Even so, the quote keeps the previous day’s downside break of 50% Fibonacci retracement level of June 2020 to January 2021 upside.

Other than the clear trading below the key Fibonacci retracement level, 200-day SMA breakdown and a downward sloping trend line from February 25, coupled with the bearish MACD, also favor EUR/USD sellers.

However, an eight-month-long horizontal area around 1.1700-1685 restricts the pair’s immediate downside ahead of the 61.8% Fibonacci retracement level and November 2020 bottom, respectively around 1.1620 and 1.1600.

Meanwhile, a corrective pullback beyond 50% Fibonacci retracement level of 1.1758 will aim to regain the 1.1800 threshold.

Though, any further upside past-1.1800 will be challenged by the stated resistance line and the early month lows near 1.1835-40. Also likely to question the EUR/USD run-up is the 200-day SMA level of 1.1875.

Overall, EUR/USD bears have some room to the south before confronting the key support.

EUR/USD daily chart

Trend: Further weakness expected

Additional important levels

Overview
Today last price	1.1723
Today Daily Change	-42 pips
Today Daily Change %	-0.36%
Today daily open	1.1765

Trends
Daily SMA20	1.191
Daily SMA50	1.2027
Daily SMA100	1.2057
Daily SMA200	1.1871

Levels
Previous Daily High	1.1794
Previous Daily Low	1.1761
Previous Weekly High	1.1947
Previous Weekly Low	1.1762
Previous Monthly High	1.2243
Previous Monthly Low	1.1952
Daily Fibonacci 38.2%	1.1773
Daily Fibonacci 61.8%	1.1781
Daily Pivot Point S1	1.1752
Daily Pivot Point S2	1.174
Daily Pivot Point S3	1.1719
Daily Pivot Point R1	1.1786
Daily Pivot Point R2	1.1806
Daily Pivot Point R3	1.1819

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.

GBP/USD extends recovery, trades above 1.3200

GBP/USD clings to modest gains above 1.3200 on Friday after closing in positive territory on Thursday. Still, the cautious market mood makes it difficult for the pair to gather bullish momentum as investors remain focused on US-Iran conflict and the volaility surrounding global technology shares.

EUR/USD rebounds to 1.1400 as USD corrects lower

EUR/USD builds on Thursday's moderate recovery gains and advances to the 1.1400 area on Friday. The US Dollar (USD) struggles to find demand and helps the pair edge higher as investors keep a close eye on headlines coming out of the Middle East and the action in global technology stocks.

Gold clings to small gains above $4,000 but Fed hike bets cap the upside

Gold moves sideways in a tight channel above $4,000 after posting modest gains on Thursday. Nevertheless, the precious metal finds it difficult to gather bullish momentum as markets grow increasingly convinced about a hawkish Federal Reserve policy outlook.

Ripple price clings to $1 as long liquidations deepen bearish trend

Ripple (XRP) trades near the key psychological support level of $1 after losing more than 8% so far this week. CoinGlass liquidation data shows that over 97% XRP long positions were wiped out over the past 24 hours. In addition, derivatives metrics continue to favor the bears.

The Mag 7 trade is ending – The AI cash-flow divorce is just beginning

The AI boom is not weakening. The market is simply becoming less willing to reward companies for writing ever-larger infrastructure cheques without a clearer cash-return timetable. Microsoft, Amazon, Alphabet and Meta are becoming the financing arm of the AI cycle, while chips, memory, networking and power infrastructure increasingly look like the early cash beneficiaries.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.