EUR/USD Price Analysis: Edges higher past 1.1100-1090 support zone ahead of Eurozone, US PMI
- EUR/USD stays defensive at the lowest levels in eight days after snapping three-week uptrend.
- Three-month-old horizontal support zone challenges Euro sellers as MACD signals suggest easing bearish bias.
- Immediate descending trend line, 50-SMA restricts EUR/USD recovery before the multi-month high marked the last week.
- A slew of technical levels stand tall to challenge Euro bears beyond 1.0920 level.
EUR/USD edges higher past 1.1100 after bouncing off the lowest level in a week, indecisive around 1.1130 amid early Monday morning in Europe. In doing so, the Euro pair lacks clear directions while defending the previous day’s rebound from a three-month-old horizontal support zone, currently around 1.1100-1090.
The corrective pullback also portrays the market’s positioning for today’s preliminary readings of the US and Eurozone PMIs for July, as well as the cautious mood ahead of the monetary policy decision of the European central bank (ECB) and the Federal Reserve (Fed).
Also read: EUR/USD steadies above 1.1100 after three-day losing streak, EU/US PMI data, ECB, Fed eyed
Apart from the aforementioned support zone, the receding bearish bias of the MACD signals also challenges the EUR/USD sellers, which in turn suggests the extension of the latest corrective bounce.
However, a downward-sloping resistance line from the latest multi-month peak marked on July 18, around 1.1180 at the latest, restricts the immediate upside of the EUR/USD pair. Following that, the 50-SMA can act as the final defense of the sellers around 1.1190. It’s worth observing that the 1.1200 round figure may also check the pair buyers before directing them to the latest peak surrounding 1.1275.
On the flip side, a clear break of the 1.1090 support could quickly drag the EUR/USD price toward another horizontal support area comprising levels marked since late June, around 1.1010-1000 at the latest.
In a case where the EUR/USD remains bearish past 1.1000, an ascending support line from May 31, close to 1.0920, will be the key support before pleasing the pair sellers.
EUR/USD: Four-hour chart
Trend: Limited recovery 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.
