EUR/USD Price Analysis: Defends critical daily support line amid light trading

EUR/USD has found some support near 1.1540 prize zone.
21-DMA could challenge the road to recovery for the EUR bulls.
The EUR sellers continue to target the yearly lows at 1.1524.

Dhwani Mehta FXStreet

EUR/USD is looking to extend its rebound from two-week lows of 1.1535, as the US dollar is reversing Friday’s massive rally amid the improving market mood.

The greenback rallied hard on Friday, as the Fed’s rate hike expectations ramped on rising US price pressures, as showed by the US PCE Price Index. The month-end buying into the dollar also boded ill for the major.

Meanwhile, dovish ECB and mixed Eurozone macro news weighed negatively on the euro. Attention now turns towards the US ISM Manufacturing PMI data and the sentiment on Wall Street for fresh trading impetus. Note that most major European markets are closed in observance of a public holiday.

Looking at EUR/USD’s daily chart, the price is bouncing off the rising trendline support, connecting the yearly lows of 1.1524 and Friday’s low of 1.1535, at 1.1538.

If the recovery momentum picks up pace, then the horizontal 21-Daily Moving Average (DMA) at 1.1597.

Further up, the 1.1650 psychological barrier will come into play.

The 14-Day Relative Strength Index (RSI) is edging higher towards the midline, currently at 42.93, suggesting that the downside remains intact while the leading indicator stays below the 50.00 central line.

EUR/USD: Daily chart

Alternatively, a daily closing below the aforesaid support line will threaten the 2021 low of 1.1524.

The next stop for EUR sellers is seen at the 1.1500 round figure. On selling resurgence, the July 2020 levels around mid-1.1400s will be tested.

EUR/USD: Additional levels to consider

EUR/USD

Overview
Today last price	1.1571
Today Daily Change	0.0016
Today Daily Change %	0.14
Today daily open	1.1556

Trends
Daily SMA20	1.1599
Daily SMA50	1.1697
Daily SMA100	1.1768
Daily SMA200	1.1905

Levels
Previous Daily High	1.1687
Previous Daily Low	1.1535
Previous Weekly High	1.1692
Previous Weekly Low	1.1535
Previous Monthly High	1.1692
Previous Monthly Low	1.1524
Daily Fibonacci 38.2%	1.1593
Daily Fibonacci 61.8%	1.1629
Daily Pivot Point S1	1.1499
Daily Pivot Point S2	1.1441
Daily Pivot Point S3	1.1347
Daily Pivot Point R1	1.1651
Daily Pivot Point R2	1.1745
Daily Pivot Point R3	1.1803

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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