EUR/USD Price Analysis: Bears take a breather ahead of 1.1300 key support

EUR/USD holds lower grounds at weekly bottom after the biggest daily loss in two weeks.
50-DMA, two-month-old rising support line confine further declines.
Clear break of horizontal area from November, MACD conditions keeps sellers hopeful.
Buyers remain away until the quote stays below 100-DMA.

Anil Panchal FXStreet

EUR/USD seesaws around 1.1320-25 during early Wednesday morning in Asia, having dropped the most in 12 days the previous day.

The major currency pair’s slump on Tuesday dragged MACD towards teasing the bears while breaking a two-month-long resistance-turned-support area of around 1.1380-85.

However, the 50-DMA level surrounding 1.1325 restricts the EUR/USD pair’s immediate declines ahead of an upward sloping support line from late November, close to 1.1300 at the latest.

Given the MACD conditions and a clear break of the key supports, EUR/USD prices are likely to conquer the 1.1300 support line, which in turn could drag the quote towards the 2021 bottom surrounding 1.1185.

During the fall, the 1.1230 and the 1.1200 threshold may offer an intermediate halt.

On the contrary, corrective pullback remains elusive below the horizontal area from November 16, near 1.1380-85.

Following that, the 50% Fibonacci retracement (Fibo.) level of October-November 2021 downside, near 1.1440, will test the EUR/USD buyers.

Even if the pair prices rise beyond 1.1440, 100-DMA and 61.8% Fibo. level, respectively around 1.1490 and 1.1500, will be tough resistances to break for the bulls.

EUR/USD: Daily chart

Trend: Further weakness expected

Additional important levels

Overview
Today last price	1.1325
Today Daily Change	-0.0082
Today Daily Change %	-0.72%
Today daily open	1.1407

Trends
Daily SMA20	1.1346
Daily SMA50	1.133
Daily SMA100	1.1502
Daily SMA200	1.1729

Levels
Previous Daily High	1.1434
Previous Daily Low	1.1392
Previous Weekly High	1.1483
Previous Weekly Low	1.1285
Previous Monthly High	1.1386
Previous Monthly Low	1.1222
Daily Fibonacci 38.2%	1.1408
Daily Fibonacci 61.8%	1.1418
Daily Pivot Point S1	1.1388
Daily Pivot Point S2	1.1368
Daily Pivot Point S3	1.1345
Daily Pivot Point R1	1.143
Daily Pivot Point R2	1.1454
Daily Pivot Point R3	1.1473

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.

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