EUR/USD Price Analysis: 20-DMA probes bounce from two-month-old support line

EUR/USD struggles to extend corrective pullback from the key support.
Bearish MACD signals suggest further downside, 50-DMA acts as immediate support.
Bulls need a clear break of 61.8% Fibonacci retracement for confirmation.

Anil Panchal FXStreet

EUR/USD remains pressured below 20-DMA, around 1.1340 amid Monday’s initial Asian session, following the biggest weekly fall in five.

In addition to the major currency pair’s failures to cross the short-term key moving average, bearish MACD signals also suggest the bear’s firm determination to break an upward sloping trend line from late November, which has been defending buyers of late.

Ahead of the stated key support line, near 1.1300 by the press time, the 50-DMA level of 1.1315 will test the EUR/USD sellers.

Also acting as a downside filter is the 23.6% Fibonacci retracement (Fibo.) level of October-November 2021 downside, near 1.1300, a break of which will direct the quote towards 2021 bottom of 1.1186 with 1.1230 likely acting as a buffer.

Meanwhile, a clear upside break of the 20-DMA level surrounding 1.1350 won’t be a green signal for the EUR/USD bulls as 50% Fibo. and the monthly high, respectively around 1.1435 and 1.1480, will challenge the pair’s recovery.

Even if the pair rises past 1.1480, the 61.8% Fibonacci retracement level of 1.1500 will be a crucial resistance for the pair traders to watch.

To sum up, the EUR/USD prices are at a critical support juncture as traders await the Fed verdict.

EUR/USD: Daily chart

Trend: Further declines expected

Additional important levels

Overview
Today last price	1.1342
Today Daily Change	0.0001
Today Daily Change %	0.01%
Today daily open	1.1341

Trends
Daily SMA20	1.1348
Daily SMA50	1.1317
Daily SMA100	1.1481
Daily SMA200	1.1716

Levels
Previous Daily High	1.136
Previous Daily Low	1.1301
Previous Weekly High	1.1434
Previous Weekly Low	1.1301
Previous Monthly High	1.1386
Previous Monthly Low	1.1222
Daily Fibonacci 38.2%	1.1337
Daily Fibonacci 61.8%	1.1323
Daily Pivot Point S1	1.1308
Daily Pivot Point S2	1.1275
Daily Pivot Point S3	1.1249
Daily Pivot Point R1	1.1367
Daily Pivot Point R2	1.1393
Daily Pivot Point R3	1.1426

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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