- 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
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Trend: Further downside expected
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