• EUR/USD began the week’s trading with downside gap, licks its wounds around daily lows off late.
  • Horizontal area from early December limits recovery moves, bearish MACD favors sellers.
  • Three-month-old descending trend line challenges sellers targeting the 1.1000 level.

EUR/USD struggles to extend the rebound from intraday low around 1.1160 as traders brace for Monday’s European session.

The major currency pair portrayed a downside gap to begin the week’s trading as the risk-aversion wave favored the US dollar.

Also keeping the EUR/USD bears hopeful is the pair’s sustained trading below a horizontal resistance zone from early December 2021, around 1.1220-25, as well as the bearish MACD signals.

That said, the pair’s latest weakness drives it towards a downward sloping trend line from late November 2021, around 1.1100.

However, a clear downside break of the stated support line will make the pair vulnerable to test the 1.1000 threshold, surrounding the 61.8% Fibonacci Expansion (FE) of the EUR/USD moves between October 2021 and February 2022.

Meanwhile, a corrective pullback beyond the 1.1225 immediate hurdle won’t be an open invitation to the EUR/USD bulls as a 12-day-old descending trend line, close to 1.1315 by the press time, adds to the upside filters.

Even if the pair rises past 1.1315, the double tops marked around 1.1480-85 will be the key hurdle for the quote.

EUR/USD: Daily chart

Trend: Further weakness expected

Additional important levels

Overview
Today last price 1.1164
Today Daily Change -0.0102
Today Daily Change % -0.91%
Today daily open 1.1266
 
Trends
Daily SMA20 1.1344
Daily SMA50 1.1331
Daily SMA100 1.1384
Daily SMA200 1.162
 
Levels
Previous Daily High 1.1271
Previous Daily Low 1.1166
Previous Weekly High 1.1391
Previous Weekly Low 1.1106
Previous Monthly High 1.1483
Previous Monthly Low 1.1121
Daily Fibonacci 38.2% 1.1231
Daily Fibonacci 61.8% 1.1206
Daily Pivot Point S1 1.1198
Daily Pivot Point S2 1.1129
Daily Pivot Point S3 1.1093
Daily Pivot Point R1 1.1303
Daily Pivot Point R2 1.1339
Daily Pivot Point R3 1.1408

 

 

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