EUR/USD Price Analysis: Euro bears struggle to justify 1.0970 support break

EUR/USD remains pressured at the lowest level in a month.
Bears flirt with 50-day EMA after breaking key support confluence.
Steady RSI (14) line, bearish MACD signals joins support break to favor Euro sellers.

Anil Panchal FXStreet

EUR/USD sellers attack the 1.0900 round figure, renewing the intraday low near 1.0910 amid the mid-Asian session on Friday. That said, the Euro pair broke a short-term key support confluence to post the biggest daily slump in two weeks the previous day.

In addition to the downside break of convergence of the 21-day Exponential Moving Average (EMA) and the bottom line of a one-month-old bullish channel, around 1.0970, the EUR/USD sellers also cheer bearish MACD signals to renew the monthly low on Thursday.

Adding strength to the Euro pair’s downside bias is the absence of an oversold RSI (14) line. However, the 50-day EMA level of around 1.0895 prods the EUR/USD bears of late.

Should the EUR/USD bears keep the reins past 1.0895, the 38.2% and 50% Fibonacci retracement level of its January-April increase, respectively near 1.0860 and 1.0790, can’t be ruled out.

Alternatively, the EUR/USD pair’s corrective bounce remains elusive unless the quote stays below the 1.0970 support-turned-resistance.

Even if the major currency pair crosses the 1.0970 hurdle, the 1.1000 round figure and multiple hurdles around 1.1050 may challenge the EUR/USD bulls before directing them to the aforementioned channel’s top line, close to 1.1120 at the latest.

EUR/USD: Daily chart

Trend: Further downside expected

Additional important levels

Overview
Today last price	1.0917
Today Daily Change	-0.0065
Today Daily Change %	-0.59%
Today daily open	1.0982

Trends
Daily SMA20	1.0999
Daily SMA50	1.0861
Daily SMA100	1.0793
Daily SMA200	1.0446

Levels
Previous Daily High	1.1007
Previous Daily Low	1.0942
Previous Weekly High	1.1092
Previous Weekly Low	1.0942
Previous Monthly High	1.1095
Previous Monthly Low	1.0788
Daily Fibonacci 38.2%	1.0982
Daily Fibonacci 61.8%	1.0966
Daily Pivot Point S1	1.0947
Daily Pivot Point S2	1.0912
Daily Pivot Point S3	1.0882
Daily Pivot Point R1	1.1012
Daily Pivot Point R2	1.1042
Daily Pivot Point R3	1.1078

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.

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