- 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
Trend: Further downside expected
Additional important levels
|Today last price||1.0339|
|Today Daily Change||-0.0070|
|Today Daily Change %||-0.67%|
|Today daily open||1.0409|
|Previous Daily High||1.0429|
|Previous Daily Low||1.0355|
|Previous Weekly High||1.0449|
|Previous Weekly Low||1.0223|
|Previous Monthly High||1.0094|
|Previous Monthly Low||0.9632|
|Daily Fibonacci 38.2%||1.0383|
|Daily Fibonacci 61.8%||1.0401|
|Daily Pivot Point S1||1.0366|
|Daily Pivot Point S2||1.0323|
|Daily Pivot Point S3||1.0292|
|Daily Pivot Point R1||1.0441|
|Daily Pivot Point R2||1.0472|
|Daily Pivot Point R3||1.0515|
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.