EUR/USD Price Analysis: Inches closer to 1.1420-10 support zone

EUR/USD remains heavy near the lowest levels in 16 months.
Bearish MACD, sustained trading below October’s trough allow sellers extra time.
Five-month-old support line joins June 2020 peak to highlight 1.1420-10 as the key area.
Monthly horizontal line guards immediate upside ahead of 20-DMA.

Anil Panchal FXStreet

EUR/USD bears take a breather around the July 2020 levels following a two-day downtrend, taking rounds to 1.1450 during Friday’s early Asian session.

The major currency pair’s slump could be linked to the clear downside break of a horizontal area comprising multiple levels marked since early October. Also favoring sellers are the bearish MACD signals.

However, a convergence of a five-month-long descending trend line and high marked in June 2020 offer a tough nut a crack for the EUR/USD sellers around 1.1420-10 zone. The nearly oversold RSI conditions also highlight the importance of the said support region.

It’s worth noting that the 1.1400 threshold adds to the downside filter and allows counter-trend traders an extra opportunity for taking the risk.

On the other hand, corrective pullback remains less lucrative until the quote stay below one-month-old horizontal resistance, previous support around 1.1530.

Following that, the 20-DMA and a descending resistance line from September, respectively around 1.1585 and 1.1635, will be in focus.

Adding to the upside filters is the downward sloping trend line from May, close to 1.1670 at the latest.

EUR/USD: Daily chart

Trend: Further declines limited

Additional important levels

Overview
Today last price	1.1451
Today Daily Change	-0.0027
Today Daily Change %	-0.24%
Today daily open	1.1478

Trends
Daily SMA20	1.1599
Daily SMA50	1.1663
Daily SMA100	1.1736
Daily SMA200	1.1884

Levels
Previous Daily High	1.1597
Previous Daily Low	1.1478
Previous Weekly High	1.1616
Previous Weekly Low	1.1513
Previous Monthly High	1.1692
Previous Monthly Low	1.1524
Daily Fibonacci 38.2%	1.1523
Daily Fibonacci 61.8%	1.1551
Daily Pivot Point S1	1.1438
Daily Pivot Point S2	1.1399
Daily Pivot Point S3	1.1319
Daily Pivot Point R1	1.1557
Daily Pivot Point R2	1.1636
Daily Pivot Point R3	1.1676

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.

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