• EUR/USD holds lower ground near the 20-year bottom, sidelined of late.
  • Oversold RSI tests bears around January 2001 peak.
  • Bearish MACD signals, clear break of previous support from July keep sellers hopeful.
  • Six-month-old descending trend channel stays in focus amid risk-off mood, energy crisis in Europe.

 

EUR/USD flirts with the 0.9600 threshold after a six-day downtrend that refreshed the 20-year low. Even so, the major currency pair remains inside a bearish chart pattern and keeps the sellers hopeful during Wednesday’s Asian session.

That said, the six-week-old downward sloping trend channel joins the sour sentiment and challenges for the eurozone, in terms of the energy crisis, to weigh on the prices. Also keeping the sellers hopeful are the bearish MACD signals.

Also read: EUR/USD braces for fresh multi-year low around 0.9600, ECB’s Lagarde, Fed’s Powell eyed

However, the oversold RSI (14) seems to challenge the EUR/USD bears around the early 2001 peak surrounding 0.9600.

Hence, the EUR/USD bears await sustained trading below 0.9600 to renew the multi-year low, currently around 0.9550. In doing so, the stated channel’s support line near 0.9465 will be in focus.

Alternatively, recovery moves remain elusive unless the price rises back beyond the previous support line from July 14, close to 0.9830 at the latest.

Even if the EUR/USD pair crosses the 0.9830 hurdle, it needs to pass through the upper line of the bearish channel, at 1.0025 to recall the buyers.

EUR/USD: Daily chart

Trend: Further downside expected

Additional important levels

Overview
Today last price 0.9599
Today Daily Change 0.0005
Today Daily Change % 0.05%
Today daily open 0.9594
 
Trends
Daily SMA20 0.9924
Daily SMA50 1.0056
Daily SMA100 1.0265
Daily SMA200 1.0679
 
Levels
Previous Daily High 0.9671
Previous Daily Low 0.9569
Previous Weekly High 1.0051
Previous Weekly Low 0.9668
Previous Monthly High 1.0369
Previous Monthly Low 0.9901
Daily Fibonacci 38.2% 0.9608
Daily Fibonacci 61.8% 0.9632
Daily Pivot Point S1 0.9552
Daily Pivot Point S2 0.951
Daily Pivot Point S3 0.945
Daily Pivot Point R1 0.9654
Daily Pivot Point R2 0.9713
Daily Pivot Point R3 0.9756

 

 

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