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.
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
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.
