EUR/USD Price Analysis: Floats above 1.0580 support
- EUR/USD remains sidelined around three-week-old horizontal support, fades upside momentum of late.
- Downbeat RSI keeps bears hopeful of meeting 1.0440 support confluence.
- Bulls need to cross the weekly resistance line to retake control.
EUR/USD fades late Thursday’s corrective bounce off short-term key support as it retreats to 1.0590 during Friday’s Asian session.
Not only the failure to stay beyond the short-term key support but the RSI (14) line also keeps the pair sellers hopeful by printing the sub-50 level but staying beyond the oversold region.
As a result, the quote is likely to break the aforementioned three-week-old horizontal support line, close to 1.0580.
Following that, a slump toward the previous weekly low near the 1.0500 round figure becomes imminent.
However, a convergence of the 200-SMA and a one-month-long ascending trend line, close to 1.0440, appears a tough nut to crack for the EUR/USD bears afterward.
In a case where the pair sellers manage to keep the reins past 1.0440, the late November swing low near 1.0220 will gain the market’s attention.
On the flip side, a one-week-old descending resistance line, close to 1.0650, guards the EUR/USD pair’s immediate recovery moves.
Also acting as upside filters are multiple hurdles around 1.0660 and 1.0700, a break of which could challenge the monthly high of 1.0736.
To sum up, EUR/USD holds onto the bearish bias despite the latest inaction around the short-term key support.
EUR/USD: Four-hour chart
Trend: Further downside 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.
