EUR/USD Price Analysis: 1.1760 becomes a tough nut to crack for bears
- EUR/USD stays depressed after posting the biggest daily losses in a month.
- Oversold RSI challenges the bears around the key support line from November.
- 13-day-old falling trend line guards immediate upside, sellers can quickly refresh yearly bottom on support line break.
EUR/USD holds lower ground near early April bottom surrounding 1.1780 amid the initial Asian session on Wednesday. The currency-major pair dropped the most since mid-June after strong US CPI empowered the bears.
However, oversold RSI conditions and an ascending support line from November will challenge the bears around 1.1760. Also backing the hopes of a corrective bounce is the latest uptick in Momentum.
While the recent bounce eyes the 1.1800 threshold, any further recoveries will be tested by a short-term resistance line around 1.1865.
In a case where EUR/USD bulls manage to cross the said trend line hurdle, the late June peak of 1.1965 and 200-DMA level near 1.2010 will be the key to follow.
Alternatively, a downside break of 1.1760 will not hesitate to refresh the yearly low of 1.1704 and attack the 1.1700 round figure to aim for the 2020 bottom close to 1.1600.
EUR/USD daily chart
Trend: Corrective pullback expected
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.
