• EUR/USD holds onto the one-week-old bearish consolidation below six-week-long resistance line.
  • Steady RSI sustained trading below 100-SMA adds strength to the downside bias.
  • Clear break of 1.0490 acts as a trigger for notable declines, 1.0650 may lure intraday buyers.

EUR/USD remains sidelined at around 1.0550, keeping the weekly bear flag intact during Tuesday’s initial Asian session.

Unlike other major currency pairs that lost heavily against the US dollar in the recent risk-off play, the EUR/USD stayed inside a one-week-old rising trend channel after dropping over 450 pips during late April. In doing so, the quote portrays a bear flag chart pattern suggesting the further downside.

Other than the bearish formation, steady RSI and sustained trading below the key resistances, namely 100-SMA and a downward sloping trend line from March 31, keep EUR/USD bears hopeful.

However, a clear downside break of the flag’s support, around 1.0490 by the press time, becomes necessary for the show of south-run targeting the theoretical point around 1.0000. During the fall, lows marked in 2017 near 1.0340 may act as a buffer.

Alternatively, recovery moves may initially aim for the confluence of the stated flag and the 100-SMA, around 1.0650.

Following that, the aforementioned resistance line from March 31, close to 1.0730, will be in focus.

EUR/USD: Four-hour chart

Trend: Further weakness expected

Additional important levels

Overview
Today last price 1.0556
Today Daily Change 0.0008
Today Daily Change % 0.08%
Today daily open 1.0548
 
Trends
Daily SMA20 1.0699
Daily SMA50 1.0883
Daily SMA100 1.1107
Daily SMA200 1.1349
 
Levels
Previous Daily High 1.0599
Previous Daily Low 1.0483
Previous Weekly High 1.0642
Previous Weekly Low 1.0483
Previous Monthly High 1.1076
Previous Monthly Low 1.0471
Daily Fibonacci 38.2% 1.0554
Daily Fibonacci 61.8% 1.0527
Daily Pivot Point S1 1.0488
Daily Pivot Point S2 1.0427
Daily Pivot Point S3 1.0372
Daily Pivot Point R1 1.0604
Daily Pivot Point R2 1.0659
Daily Pivot Point R3 1.072

 

 

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