EUR/USD Price Analysis: Impending death cross teases bears around 1.1800 on ECB day

EUR/USD edges higher after bouncing off three-month low.
Bearish pattern is underway near the key support line, Momentum line also favors sellers.
Corrective pullback needs fresh monthly high to reject bearish hopes.

Anil Panchal FXStreet

EUR/USD flirts with 1.1800, after a rebound from early April levels, amid the initial Asian session on Thursday.

The major currency pair bounced off an ascending support line from November the previous day but the looming bearish cross, a condition where 50-DMA drops below 200-DMA and signals further downside, tested the recovery moves.

Given the downward sloping Momentum line, coupled with the failures to recover, EUR/USD stays ready to welcome the bears should the quote closes below the stated support line, near 1.1775.

In doing so, the pair will also confirm the bearish cross and will be well-set to challenge the yearly low near the 1.1700 threshold. Following that, lows marked during September 2020 and high of March 2020, respectively around 1.1615 and 1.1500, could gain the market’s attention.

Alternatively, the pair’s recovery moves may aim for June’s low surrounding 1.1845 but the monthly top near 1.1900 will be the key for further upside.

Above all, the pair traders should keep their eyes on the European Central Bank (ECB) monetary policy meeting for fresh impulse.

Read: ECB Preview: Three reasons why Lagarde could hit the euro when it is down

EUR/USD: Daily chart

Trend: Further weakness expected

Additional important levels

Overview
Today last price	1.1794
Today Daily Change	0.0013
Today Daily Change %	0.11%
Today daily open	1.1781

Trends
Daily SMA20	1.1853
Daily SMA50	1.202
Daily SMA100	1.1985
Daily SMA200	1.2006

Levels
Previous Daily High	1.1803
Previous Daily Low	1.1756
Previous Weekly High	1.188
Previous Weekly Low	1.1772
Previous Monthly High	1.2254
Previous Monthly Low	1.1845
Daily Fibonacci 38.2%	1.1774
Daily Fibonacci 61.8%	1.1785
Daily Pivot Point S1	1.1757
Daily Pivot Point S2	1.1733
Daily Pivot Point S3	1.1709
Daily Pivot Point R1	1.1804
Daily Pivot Point R2	1.1827
Daily Pivot Point R3	1.1851

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.

AUD/USD bulls regain control above 0.6950 amid USD retreat

AUD/USD regains traction and extends the previous day's bounce from the weekly low, aiming for 0.7000 in Asia on Friday. The overnight pullback in US bond yields keeps the US Dollar below an 18-month high, which in turn offers some support to the pair. Meanwhile, hawkish RBA expectations also keep the major underpinned.

USD/JPY holds gains near 158.00 after Japan's weak Household Spending data

USD/JPY clings to gains around 158.00 after data showed on Friday that Japan's Household Spending fell for the ninth straight month, undermining the Japanese Yen. Meanwhile, the US Dollar remains depressed as the overnight fall in US bond yields counters a hawkish Fed and geopolitical uncertainties, could cap any downside in the pair.

Gold remains range-bound below $4,200

Gold has given up some ground after an initial bullish attempt to reach weekly highs, returning to below the $4,200 mark per troy ounce on Friday. The US Dollar’s strong upside momentum, combined with rising US Treasury yields across the curve, seems to keep further gains in the yellow metal under scrutiny.

Has Bitcoin really escaped the macro forces it was built to fight?

Over 17 years ago, Satoshi Nakamoto designed Bitcoin (BTC) on the back of a global financial crisis as an alternative to the global monetary system outside the control of central banks, governments and traditional intermediaries. This raises a key question: has Bitcoin really become independent of the macroeconomic forces it was built to challenge?

The Euro is not the sick man of Europe. France's bond market is

EUR/USD remains under pressure, near the 17-month low of 1.1161 reached on Monday. The pair has lost more than 7% since its yearly peak, as concerns over France's public finances increasingly weigh on the single currency. But behind the weakness of the Euro (EUR), the problem does not necessarily lie with the European economy as a whole.