EUR/USD Price Analysis: Bears attack two-month-old support near 1.0540 to keep the reins
- EUR/USD bears take a breather after posting the biggest daily slump since late September 2022.
- Failure to cross a fortnight-long horizontal resistance joins bearish MACD signals to favor Euro sellers.
- Upward-sloping support line from early January 2023 appears the last defense of EUR/USD buyers.
- Bulls need validation from 200-SMA to retake control.
EUR/USD remains pressured around the lowest levels in a week, making rounds to 1.0550-45 after falling the most in nearly 3.5 months the previous day. That said, the major currency pair snapped a two-day winning streak while posting a U-turn from the 13-day-long horizontal hurdle, as well as pleasing the bears, the previous day.
Not only the quote’s U-turn from the short-term key horizontal resistance, around 1.0690-700 but the bearish MACD signals and sustained trading below the 200-SMA also keeps the EUR/USD sellers hopeful.
That said, an upward-sloping support line from early January, currently around 1.0540, appears the immediate challenge for the Euro bears to tackle.
Following that, the previous monthly low surrounding 1.0530 may act as an intermediate halt during the fall towards the January 2023 bottom of 1.0483.
In a case where EUR/USD remains bearish past 1.0483, a late December 2022 trough near 1.0445 could act as an extra downside filter.
On the flip side, a clear break of the aforementioned horizontal hurdle near 1.0690-700 becomes necessary to convince the Euro buyers.
Even so, the 200-bar Simple Moving Average (SMA), close to 1.0735 by the press time, could act as a validation point for the EUR/USD pair’s further advances.
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.
