EUR/USD Price Analysis: Bears approach fortnight-old support near 1.1290
- EUR/USD takes offers to refresh intraday low, prints four-day downtrend.
- Clear break of 200-SMA, ascending trend line from late January favor sellers.
- MACD, RSI adds to the bearish bias targeting short-term support line.
- One-week-old descending trend line adds to the upside filters.
EUR/USD takes offers around 1.1300, printing a fourth consecutive daily downside during the initial Asian session on Tuesday. In doing so, the major currency pair justifies the market’s rush to risk-safety amid recently high fears concerning the Russia-Ukraine tussles.
Read: UK PM Johnson to chair COBRA meeting, Canada, US prepares economic sanctions over Russian actions
That said, the pair’s downside break of the 200-SMA and an upward sloping trend line from January 28 joins bearish MACD signals and descending RSI, not oversold, to keep EUR/USD sellers hopeful.
However, a 13-day-long support line near 1.1290 may test the pair sellers before directing them to the 61.8% Fibonacci retracement (Fibo.) of January-February upside, around 1.1265.
In a case where EUR/USD bears conquer 1.1265 support, 1.1230 and the 1.1200 threshold may act as buffers before directing the quote towards the late January’s bottom surrounding 1.1120.
Alternatively, 200-SMA and the previous support line guards immediate recovery moves of the EUR/USD prices around 1.1345-50.
Also challenging the pair buyers is a descending trend line from January 11, near 1.1375, as well as the 1.1400.
It’s worth noting that the quote’s run-up beyond 1.1400 will challenge the monthly peak of 1.1495.
EUR/USD: Four-hour chart
Trend: Further weakness 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.
