EUR/USD Price Analysis: Euro bears dominate below 1.0720 hurdle ahead of EU inflation, US employment
- EUR/USD licks its wounds at the lowest levels in 11 weeks.
- Eurozone inflation, US ADP Employment Change and PMI data to decorate calendar.
- Convergence of previous support line from November, one-month-old descending resistance line prods EUR/USD rebound.
- Oscillators suggest slow grind towards the south, bumpy road ahead of hitting yearly low.
EUR/USD stays defensive around 1.0690, after bouncing off a 2.5-month low, as Euro traders await the key political and economic developments surrounding Eurozone and the US early Thursday.
That said, the oversold RSI (14) seems to have triggered the EUR/USD pair’s corrective bounce off the lowest levels since mid-March.
However, the bearish MACD signals join a convergence of the previous support line from November 2022 and a one-month-old descending resistance line, close to 1.0720 at the latest, to challenge the Euro bulls.
Even if the EUR/USD buyers manage to cross the 1.0720 hurdle, February 14’s high of 1.0805 and the February month peak of 1.1033 could challenge the upside momentum. It’s worth noting that the 1.0900 and 1.1000 round figures are extra filters toward the north.
Alternatively, the latest low of 1.0635 and the 1.0600 round figure may prod the EUR/USD bears before directing them to March’s bottom surrounding 1.0515.
Following that, the 200-DMA support of around 1.0500 and January’s bottom near 1.0485 will be in the spotlight.
Overall, EUR/USD is likely to remain bearish despite the latest corrective bounce.
Also read: EUR/USD Forecast: Euro steadies, supported by a weaker Dollar
EUR/USD: Daily chart
Trend: Bearish
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.
