EUR/USD Price Analysis: Approaches 1.0770 support within weekly bullish channel
- EUR/USD holds lower ground inside a one-week-old bullish chart pattern.
- 50-SMA restricts immediate downside but bearish MACD signals, steady RSI hints at further weakness.
- Monthly horizontal support, 200-SMA add to the downside filters.
- Bulls need validation from 1.0890 to break the monotony.
EUR/USD stays pressured around 1.0790 amid the early hours of Thursday’s Asian session, after refreshing the nine-month high but posting a daily negative. In doing so, the major currency pair remains inside a weekly bullish channel, poking the 50-SMA immediate support as of late.
However, the bearish MACD signals and steady RSI (14), not to forget the weekly trading range, keeps the EUR/USD sellers hopeful of breaking the 1.0780 immediate support and approaching the 1.0770 key level comprising the stated channel’s lower line.
It’s worth noting that the quote’s weakness past 1.0770 could quickly drag it to the horizontal area comprising levels marked since 2022’s end, around 1.0710. Following that, the 200-SMA level of 1.0642 could probe the EUR/USD bears.
Alternatively, recovery moves may initially aim for the 1.0830 hurdle before challenging the aforementioned channel’s top line, close to 1.0890 by the press time.
Also acting as an upside filter is the 1.0900 threshold, a break of which could propel the EUR/USD prices towards poking the April 2022 peak near 1.0935. Even so, lows marked during late March 2022, around 1.0945 could challenge the EUR/USD buyers afterward.
EUR/USD: Four-hour chart
Trend: Further downside 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.
