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.

AUD/USD edges higher as hot CPI inflation and hawkish RBA lift rate hike bets

The AUD/USD pair gathers strength to near 0.7035 during the Asian trading hours on Friday. The Australian Dollar edges higher against the US Dollar as hotter Australian CPI inflation data has bolstered expectations of Reserve Bank of Australia rate hikes.

USD/JPY meets support near 157.00

USD/JPY retreats for the third consecutive day on Friday, revisiting the 157.00 region before attempting some recovery as investors continue to assess the latest BoJ meeting, where the central bank left rates unchanged, as widely anticipated.

Gold sinks to fresh yearly lows despite risk-off mood as Fed rate hike bets weigh

Gold slips to fresh year-to-date lows on Friday. The metal struggles despite a risk-off mood across markets, as expectations of further Federal Reserve (Fed) interest rate hikes continue to dominate price action, leaving Gold on track to end the month in negative territory.

Ripple Price Forecast: XRP bulls defend $1.20 as sell-side pressure triggers liquidations

Ripple (XRP) trades around $1.25 on Friday, rising from a short-term support level established at $1.20. This minor upward correction follows a sharp sell-off, triggered amid reports of a hack attack on the Binance exchange that impacted approximately $6.3 billion. The attack drove the broader crypto market on edge, as Binance suspended both deposits and withdrawals to contain the situation.

BoJ recap: A pause for now... but Japan has entered a new inflation phase

The Bank of Japan left its short-term policy rate unchanged at 1.25% but delivered a distinctly hawkish message on the risk of an inflation overshoot. The decision passed by 8-1, with board member Takata dissenting in favour of an increase to 1.5%, while Governor Kazuo Ueda stressed that the Bank would continue adjusting policy as needed.

The 2% inflation target came from a throwaway remark. It now moves trillions

The Federal Reserve's 2% inflation goal grew out of an off-the-cuff remark by a New Zealand politician in 1988. Bond investors still price long-term US debt as if 2% holds, so a change in how the Fed measures inflation would move markets.