- EUR/USD grinds lower but stays afloat above short-term key support.
- Firmer downside momentum, double tops around 1.1910 keep sellers hopeful.
EUR/USD remains pressured around 1.1810 during Monday’s Asian session. This marks the fourth day of the bear’s battle with the 50-DMA as well as the 23.6% Fibonacci retracement (Fibo.) of the May-August downside.
Given the double tops surrounding 1.1910 also challenging the pair buyers, EUR/USD sellers remain hopeful with eyes on the 1.1800 immediate key support comprising the short-term DMA and the stated Fibo level.
It should be noted that the seller’s ability to keep reins below 1.1800 will direct them towards horizontal support established since late July near 1.1750.
However, any further weakness of EUR/USD will be challenged by the August 11 swing low near 1.1700 and the yearly low near 1.1660.
Alternatively, recovery moves remain less effective below 1.1910 while the late June tops near 1.1975 add to the upside filters.
Overall, EUR/USD remains directed towards the yearly low but a corrective pullback can’t be ruled out.
EUR/USD: Daily chart
Trend: Further weakness expected
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