EUR/USD Price Analysis: Extends downside break of 50-day SMA to refresh six-week low

EUR/USD takes offers near the lowest since December 09, 2020.
Sustained break of 50-day SMA, downward sloping RSI favor sellers.
Seven-day-old falling trend line adds to the upside barriers.

Anil Panchal FXStreet

EUR/USD takes offers near 1.2065, down 0.10% intraday, during Monday’s Asian session. In doing so, the currency pair drops to the fresh low since early December 2020 while stretching Friday’s downside break of 50-day SMA.

In addition to the successful break below 50-day SMA, descending RSI line, which is far from oversold conditions, also back the EUR/USD bears in attacking 38.2% Fibonacci retracement of an upside from November 2020 to the monthly high.

It should, however, be noted that December 02 low near 1.2040 and the 1.2000 threshold will be tough nuts to crack for the EUR/USD sellers ahead of 50% Fibonacci retracement near 1.1975.

If at all the quote refrains from bouncing off 1.1975, 100-day SMA and 61.8% Fibonacci retracement, respectively around 1.1930 and 1.1885, will be in focus.

Meanwhile, an upside clearance of 50-day SMA, at 1.2091 now, will have to cross a falling trend line from January 07, currently around 1.2105, to confirm corrective pullback towards the multiple lows marked since late-December around 1.2130.

During the EUR/USD upside beyond 1.2130, the previous month’s top near 1.2310 and the monthly peak surrounding 1.2350 can lure the bulls.

EUR/USD daily chart

Trend: Further weakness expected

Additional important levels

Overview
Today last price	1.2066
Today Daily Change	-12 pips
Today Daily Change %	-0.10%
Today daily open	1.2078

Trends
Daily SMA20	1.2213
Daily SMA50	1.2081
Daily SMA100	1.1929
Daily SMA200	1.1611

Levels
Previous Daily High	1.2165
Previous Daily Low	1.2077
Previous Weekly High	1.2227
Previous Weekly Low	1.2077
Previous Monthly High	1.231
Previous Monthly Low	1.1924
Daily Fibonacci 38.2%	1.211
Daily Fibonacci 61.8%	1.2131
Daily Pivot Point S1	1.2048
Daily Pivot Point S2	1.2018
Daily Pivot Point S3	1.196
Daily Pivot Point R1	1.2136
Daily Pivot Point R2	1.2195
Daily Pivot Point R3	1.2225

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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