EUR/USD Price Analysis: Euro bears attack 1.0690-85 key support as US data looms
- EUR/USD stays defensive as sellers flirt with 200-EMA, seven-month-old support line.
- Looming bull cross on MACD, below-50.00 RSI conditions prod Euro bears.
- Euro buyers need validation from 100-EMA to retake control.
EUR/USD remains pressured around the intraday low, making rounds to 1.0700 of late, as a short-term key support confluence challenges the Euro sellers amid Monday’s sluggish Asian session.
It’s worth noting that the broad US Dollar and downbeat concerns about the Eurozone keep the EUR/USD bears hopeful as traders await the US ISM Services PMI and Factory Orders.
Also read: EUR/USD stays depressed near 1.0700 ahead of US Factory Orders, ISM Services PMI
That said, the quote’s clear U-turn from the 100-day Exponential Moving Average (EMA), currently around 1.0770, allows the EUR/USD bears to prod a convergence of the 200-day EMA and an upward-sloping trend line from late November 2022.
It’s worth noting, however, that the receding bearish bias of the MACD and the nearly oversold RSI line, placed at 14, challenge the EUR/USD bears as they jostle with the key support near 1.0690-85.
Even if the quote drops below the 1.0690-85 support confluence, the 50% Fibonacci retracement of its November-April upside and a five-month-old rising support line, respectively near 1.0660 and 1.0635, can challenge the EUR/USD pair’s further downside.
Meanwhile, EUR/USD recovery needs to provide a daily closing beyond the 100-day EMA, around 1.0770 by the press time, to convince the buyers.
Even so, the lows marked during early April and May around 1.0840-50 can act as the last defense of the EUR/USD bears.
EUR/USD: Daily 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.
