EUR/USD Price Analysis: Euro retreats from 1.0925 as Fed vs ECB battle heats up
- EUR/USD takes offers to refresh intraday low, down for the third consecutive day.
- ECB policymakers keep suggesting further rate hikes and so do Fed clues.
- RSI conditions suggest bottom-picking, multiple supports challenge Euro bears.
- Bulls remain cautious below 1.1100 while 1.0970 guards immediate recovery.
EUR/USD drops for the third consecutive day amid early Tuesday morning in Europe, refreshing intraday low near 1.0920 by the press time. In doing so, the Euro pair justifies the failure to cross the 1.0970-60 area in the last week, as well as a three-day-old falling resistance line.
That said, the Euro pair fails to justify hawkish signals from the European Central Bank (ECB) Officials amid the Federal Reserve (Fed) updates which have been suggesting higher rates of late.
Also read: EUR/USD prods bears above 1.0900 as ECB hawks gain more acceptance than the Fed ones
It’s worth noting that the multiple tops marked around 1.1100 in April and May also highlight the Euro pair’s inability to defend the bullish bias. However, the below 50 conditions of the RSI (14) line challenge the EUR/USD bears.
The same highlights descending support line from Friday, around 1.0900 as an immediate key level to watch for the Euro bears.
Following that, a convergence of the 100-Hour Moving Average (HMA) and a one-week-old ascending trend line, near 1.0890, will challenge the EUR/USD bears.
It’s worth noting that, an upward-sloping support line from June 07, close to 1.0850 at the latest, acts as the last defense of the EUR/USD buyers, a break of which will confirm the short-term bearish trend of the major currency pair.
On the contrary, a downward-sloping resistance line from Friday, near 1.0920 precedes the latest peak of 1.0970 to restrict the immediate EUR/USD upside.
However, a clear break of the 1.0970 won’t hesitate to challenge the 1.1000 psychological magnet and then aim for the yearly highs marked near the 1.1100 zone.
EUR/USD: Hourly 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.
