- EUR/USD struggles to extend the strongest run-up in six weeks.
- Monthly resistance line, 50-DMA challenge upside amid bearish MACD signals.
- Multiple stops test sellers targeting 61.8% Fibonacci Expansion level.
EUR/USD again fades upside momentum below 1.1750, retreats to 1.1738 at the latest, after rising the most in six weeks. That said, the quote seesaws in a choppy range as Asian traders begin Friday’s tasks.
Although oversold RSI triggered a heavy rebound of the EUR/USD prices from the lowest levels since August 20, the bulls need validation from a three-week-old downward sloping trend line and 50-DMA. Also challenging the run-up are the bearish MACD signals and recently steady RSI.
Hence, the quote is up for a pullback towards short-term horizontal support near 1.1700.
However, any further weakness will be questioned by the yearly low of 1.1664, a break of which will direct the EUR/USD bears towards the 61.8% Fibonacci Expansion (FE) of June 15 to August 20 fall, followed by the recovery moves to early September, surrounding 1.1610.
Alternatively, a clear break of the 1.1790 key hurdle, comprising the stated resistance line and 50-DMA, will quickly direct the quote to 1.1850.
In a case where EUR/USD bulls keep reins past 1.1850, the double tops near 1.1910 will be the key challenge for them.
EUR/USD: Daily chart
Trend: Further weakness expected
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