EUR/USD Price Analysis: Defends 1.1800 on the way to two-month-old support
- EUR/USD stays pressured after reversing from three-week-old resistance line.
- Bearish MACD adds to the downside momentum towards a descending support trend line from early May.
- Yearly bottom can lure bears below the support line, bulls may refrain entries below horizontal line from March 11.
EUR/USD bears take a breather around 1.1820, following the heaviest daily fall in over two weeks, amid Wednesday’s Asian session. The currency major took a U-turn from a short-term falling trend line the previous day to recall the bears.
The downward trajectory also took clues from bearish MACD, suggesting further weakness towards a descending support line from May 05, around 1.1790-85. However, the 1.1800 threshold may offer an intermediate halt.
If at all the bears remain dominating past 1.1785, the yearly low surrounding the 1.1700 round figure, flashed in March, could return to the charts.
Meanwhile, an upside break of the stated resistance line, around 1.1890, will precede 1.1900 and a horizontal hurdle since early March near 1.1990–2000 to challenge EUR/USD bulls.
It should, however, be noted that a clear upside move past the 1.2000 psychological magnet will be a call to the pair buyers targeting the 1.2100 resistance level, close to early June lows.
Overall, EUR/USD remains on the south run but intermediate bounces can’t be ignored.
EUR/USD: Daily 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.
