EUR/USD Price Analysis: Fades bounce off 21-DMA as sellers approach 1.0200
- EUR/USD consolidates the biggest daily gain in a week and renews intraday low of late.
- 21-DMA challenges bears amid steady RSI and bullish MACD signals.
- Monthly horizontal resistance guards immediate upside, sellers need to conquer 1.0095 to keep reins.
EUR/USD takes offers to refresh intraday low around 1.0225 after Germany’s Industrial Production release on early Friday morning in Europe. In doing so, the major currency pair eased below a monthly horizontal resistance line ahead of the key US employment report for July.
That said, the absence of oversold RSI and bullish MACD hint at the continuation of the EUR/USD pair’s latest weakness.
However, the 21-DMA support near 1.0160 seems to challenge the short-term downside of the pair. Following that, the recent swing low near 1.0090 will act as the last defense of EUR/USD buyers before inviting bears to challenge the yearly low near 0.9950.
Meanwhile, recovery moves may initially battle the monthly horizontal resistance line surrounding 1.0290.
Following that, a downward sloping resistance line from February and a 2.5-month-old horizontal resistance area, surrounding 1.0360-65, appears a tough nut to crack for the EUR/USD bulls.
Although the EUR/USD prices are likely to step back from 1.0365, successful trading beyond the same won’t hesitate to propel the bulls towards June’s peak of 1.0615.
EUR/USD: Daily 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.
