EUR/USD Price Analysis: Fades bounce off 200-SMA above 1.1300
- EUR/USD consolidates the week’s first daily gains, takes offers to refresh intraday low of late.
- Pullback from 100-SMA, bearish MACD signals hints at further weakness.
- 200-SMA, two-month-old support line challenge short-term bears.
- Seven-week-old horizontal area adds to the upside filters.
EUR/USD reverses from 100-SMA to pare the previous day’s gains around 1.1340 amid early Thursday morning in Asia.
The major currency pair flashed the week’s first positive daily closing while bouncing off the 200-SMA by the end of Wednesday. However, the rebound couldn’t cross the 100-SMA and was backed by the bearish MACD signals to trigger the latest pullback.
That said, the quote is on the way to retest the 200-SMA level of 1.1325 but an upward sloping support line from late November, around 1.1300, will challenge the EUR/USD pair’s further downside.
In a case where EUR/USD drops below 1.1300, multiple supports around 1.1230 should gain the market’s attention.
On the contrary, a clear upside break of the 100-SMA level near 1.1355 isn’t a green card for the EUR/USD bulls are a horizontal area from November 30, near 1.1380-85, will challenge the pair’s further advances.
Should the quote rises past 1.1385, the 1.1400 and the monthly peak of 1.1482 should lure the pair buyers.
EUR/USD: Four-hour chart
Trend: Further weakness 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.
