EUR/USD Price Analysis: H&S confirmation favors Euro bears around 1.0890
- EUR/USD holds lower ground after confirming a bearish chart formation, sidelined of late.
- Recovery remains elusive below 1.0950 even as MACD signals test Euro sellers of late.
- 200-HMA, fortnight-old support line can act as intermediate halt during theoretical south-run targeting 1.0790.
EUR/USD prints mild losses around 1.0890 during the two-day downtrend heading into Thursday’s European session. In doing so, the Euro pair extends the previous day’s pullback from a two-month high after confirming a bearish “Head and Shoulders” (H&S) chart pattern on the hourly play.
It’s worth noting, however, that a light calendar and receding strength of the bearish MACD signals seem to challenge the EUR/USD sellers of late.
The Euro pair remains on the bear’s radar unless crossing the 1.0900 support-turned-resistance, comprising the neckline of the stated H&S formation.
Following that, a one-week-old ascending resistance line around 1.0950 can act as the last defense of the EUR/USD bears before targeting the latest swing high of 1.0975.
Should the EUR/USD buyers keep the reins past 1.0975, the 1.1000 psychological magnet and the Year-To-Date (YTD) high of 1.1033 will be in focus.
Alternatively, the 200-Hour Moving Average (HMA) precedes a two-week-long ascending trend line to restrict short-term EUR/USD downside around 1.0865 and 1.0830 in that order.
It’s worth observing that the H&S confirmation flashes the theoretical target of 1.0790 which is near the weekly bottom.
Hence, EUR/USD is well-set for further declines despite the latest inaction.
EUR/USD: Hourly 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.
