EUR/USD Price Analysis: Euro bears appear running out of steam around mid-1.0800s
- EUR/USD stays pressured towards monthly low after breaking immediate bullish channel formation.
- Nearly oversold RSI, multiple supports near 1.0845-35 challenge Euro sellers.
- Downbeat MACD signals, jungle of resistances keep EUR/USD bears hopeful.
EUR/USD holds lower grounds near 1.0860 amid the early hours of Wednesday’s Asian session, after reversing the week-start rebound on Tuesday.
In doing so, the Euro pair justifies the previous day’s downside break of a weekly bullish channel, as well as the bearish MACD signals, amid a nearly oversold RSI (14) line.
Apart from the RSI (14) line that suggests limited room for the Euro pair towards the south, multiple lows marked since April 10 around 1.0837-45 also challenge the EUR/USD bears.
Hence, the pair sellers may retreat after hitting the aforementioned immediate support, maybe around that, failing to do so won’t hesitate to challenge the previous monthly low of around 1.0785. That said, the 1.0800 round figure may act as an intermediate halt during the likely fall.
On the contrary, the stated channel’s bottom line, near 1.0885 by the press time, guards the immediate recovery of the EUR/USD pair.
Following that, the 100-Hour Moving Average (HMA) and a fortnight-old descending trend line, respectively near 1.0900 and 1.0925, may prod the Euro pair buyers.
It’s worth noting that a horizontal area comprising multiple levels marked since May 02 and the 200-HMA, close to 1.0935-45 and 1.0950 in that order, appear as the last defense of the EUR/USD bears.
EUR/USD: Hourly chart
Trend: Limited 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.
