EUR/USD Price Analysis: Bears attack three-month-old support around 1.1200
- EUR/USD fades bounce off 20-month low, battles short-term key support area.
- Bearish MACD, risk-off mood keep sellers hopeful to visit 61.8% FE.
- Bulls need to cross two-week-old descending trend line to justify short-term strength.
EUR/USD retreats from 1.1220 during the initial Asian session on Friday, around 1.1190 by the press time.
The quote dropped to the lowest levels last seen during June 2020 before reversing from 1.1106 the previous day.
Even so, the major currency pair’s failure to stay beyond three-month-old horizontal support, around 1.1185-75, for longer joins bearish MACD signals to keep EUR/USD sellers hopeful.
The latest downside needs a clear break of 1.1175 to aim for the previous month’s low of 1.1121.
Following that, the latest bottom surrounding 1.1106 holds the key to a slump towards the 61.8% Fibonacci Expansion (FE) of the EUR/USD pair’s moves between September 2021 and February 2022, near the 1.1000 psychological magnet.
Alternatively, recovery moves can target the early February’s low near 1.1280 as a nearby aim. Though, a clear upside break of a two-week-long descending resistance line, near 1.1330 by the press time, will be necessary to confirm further advances.
In a case where EUR/USD remains firmer past-1.1330, double tops marked around 1.1480-85 will be crucial resistance to watch.
EUR/USD: Daily 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.
