- EUR/USD remains pressured after reversing from five-month high, retreats from intraday high of late.
- Clear downside break of one-week-old ascending trend line, bearish MACD signals favor sellers.
- Double tops near 1.0480 precede 100-SMA to challenge bears.
EUR/USD pares intraday gains around 1.0500 during early Tuesday, fading the bounce off three-week-old horizontal support.
In doing so, the major currency pair also justifies the bearish MACD signals and the previous day’s downside break of the weekly support line, now resistance near 1.0550.
However, the double tops surrounding 1.0480 challenge the EUR/USD pair’s latest weakness. Also acting as a downside filter is the 100-SMA level surrounding 1.0385.
Should the quote stay bearish past 1.0385, the odds of witnessing a slump toward the 200-SMA level surrounding 1.0385 can’t be ruled out, which in turn holds the key for the bear’s dominance.
On the contrary, recovery moves need to stay firmer beyond the previous support line, close to 1.0550.
Even so, an ascending trend line from early November, near 1.0635 at the latest, could challenge the EUR/USD bulls.
It should be noted that the EUR/USD pair’s successful run-up beyond 1.0635 won’t hesitate to challenge the mid-2022 peak surrounding 1.0785.
Overall, EUR/USD is likely to witness a pullback unless crossing the 1.0635 hurdle. Though, the buyers could remain hopeful beyond 1.0385.
EUR/USD: Four-hour chart
Trend: Further downside expected
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.
Recommended content
Editors’ Picks
EUR/USD alternates gains with losses near 1.0720 post-US PCE
The bullish tone in the Greenback motivates EUR/USD to maintain its daily range in the low 1.070s in the wake of firmer-than-estimated US inflation data measured by the PCE.
GBP/USD clings to gains just above 1.2500 on US PCE
GBP/USD keeps its uptrend unchanged and navigates the area beyond 1.2500 the figure amidst slight gains in the US Dollar following the release of US inflation tracked by the PCE.
Gold keeps its daily gains near $2,350 following US inflation
Gold prices maintain their constructive bias around $2,350 after US inflation data gauged by the PCE surpassed consensus in March and US yields trade with slight losses following recent peaks.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.