- EUR/USD holds lower ground after breaking a three-week-old ascending trend line.
- Impending bear cross on MACD, U-turn from five-month-long resistance line adds strength to bearish bias.
- 61.8% Fibonacci retracement level lures sellers, bulls need validation from monthly top.
EUR/USD remains depressed around 1.0340, following the biggest daily fall in a week. In doing so, the major currency pair also justifies the previous day’s downside break of a three-week-old support line.
Not only the trend-line break but the looming bear cross on the MACD and the EUR/USD pair’s U-turn from the downward-sloping resistance line from late June, around 1.0475, also keeps the bears hopeful.
That said, the pair’s latest weakness aims at the 61.8% Fibonacci retracement level of May-September downside, near 1.0310.
Following that, the previous weekly low and tops marked in September, respectively around 1.0225 and 1.0200, could lure the EUR/USD sellers.
Alternatively, recovery needs to stay beyond the support-turned-resistance, around 1.0410, to lure the short-term EUR/USD buyers. Even so, the multi-day-old descending resistance line, around 1.0475, could stop the quote’s further advances.
Even if the quote stays firmer past 1.0475, the monthly high near 1.0500 appears the last defense of the EUR/USD bears.
Overall, EUR/USD remains on the bear’s radar even if the downside room appears limited.
EUR/USD: Daily chart
-29112022-638052713940368691.png)
Trend: Further downside expected
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD: A tough barrier remains around 0.6800
AUD/USD failed to maintain the earlier surpass of the 0.6800 barrier, eventually succumbing to the late rebound in the Greenback following the Fed’s decision to lower its interest rates by 50 bps.
NZD/USD advances to near 0.6200 due to risk-on mood, Fed interest rate decision awaited
The NZD/USD pair edges lower to near 0.6200 during the early Asian session on Thursday. The recent GDP data revealed that New Zealand's economy shrank again in the second quarter, suggesting the depths of its economic malaise.
Gold surrenders gains and drops to weekly lows near $2,550
Gold prices reverses the initial uptick to record highs around the $$2,600 per ounce troy, coming under renewed downside pressure and revisiting the $2,550 zone amidst the late recovery in the US Dollar.
Australian Unemployment Rate expected to hold steady at 4.2% in August
The Australian Bureau of Statistics will release the monthly employment report at 1:30 GMT on Thursday. The country is expected to have added 25K new positions in August, while the Unemployment Rate is foreseen to remain steady at 4.2%.
Ethereum could rally to $2,817 following Fed's 50 bps rate cut
Ethereum (ETH) is trading above $2,330 on Wednesday as the market is recovering following the Federal Reserve's (Fed) decision to cut interest rates by 50 basis points. Meanwhile, Ethereum exchange-traded funds (ETF) recorded $15.1 million in outflows.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.