EUR/USD Price Analysis: Euro bears eye 1.0860 ahead of German inflation, Fed Chair Powell’s speech
- EUR/USD takes offers to refresh intraday low, pokes three-week-old rising support line.
- Bearish MACD signals, broad US Dollar strength favor Euro sellers targeting 200-EMA support.
- Preliminary readings of Germany’s inflation data, Fed Chair Powell’s speech will be crucial for clear directions.
EUR/USD extends the previous day’s downturn towards piercing a three-week-old rising support line, around 1.0895 by the press time, as markets prepare for German inflation and Federal Reserve (Fed) Chairman Jerome Powell’s speech on early Thursday.
Apart from the pre-event anxiety, bearish MACD signals and the Euro pair’s sustained reversal from the previous support line from June 07, now resistance around 1.1010, also keeps the EUR/USD sellers hopeful.
However, a clear break of the aforementioned three-week-long rising support line, close to 1.0900 at the latest, becomes necessary for the Euro bear’s conviction.
Following that, the 200-Exponential Moving Average (EMA) level of near 1.0860 can prod the EUR/USD bears before directing them to the key support line stretched from May 31, surrounding 1.0790 as we write.
Meanwhile, a corrective bounce in the EUR/USD price needs to cross a downward-sloping resistance line from the last Thursday, around 1.0950 at the latest, to recall the Euro bulls.
Even so, a convergence of the monthly high and the support-turned-resistance line, close to 1.1010-15, will be a tough nut to crack for the EUR/USD bulls afterward.
EUR/USD: Four-hour chart
Trend: Further 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.
