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.

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