EUR/USD Price Analysis: Justifies bear cross to approach 1.1290 key support
- EUR/USD remains offered for a second consecutive day, renews intraday low of late.
- Bear cross joins downbeat RSI to direct sellers towards three-week-old support line.
- Corrective pullback needs validation from a fortnight-long trend line resistance.
EUR/USD takes offers to refresh intraday low around 1.1297, down 0.08% on a day during the second consecutive daily fall. In doing so, the major currency pair justifies the bearish moving average crossover, as well as downbeat RSI conditions amid Thursday’s Asian session.
Other than the 50-SMA’s piercing off the 200-SMA from above and descending RSI line, not oversold, the pair’s sustained trading below a two-week-long descending trend line also keeps the EUR/USD sellers hopeful.
However, an upward sloping trend line from February 03, around 1.1290 by the press time, becomes crucial support to watch for the bears.
Also challenging the quote’s further weakness is the 61.8% Fibonacci retracement (Fibo.) of an upside from January 28 to February 10, near 1.1265.
Meanwhile, the stated SMAs guard the quote’s recovery moves around 1.1340-45 ahead of a two-week-long resistance line near 1.1365.
Should the EUR/USD bulls cross the 1.1365 hurdle, a run-up towards the 1.1400 threshold can’t be ruled out.
EUR/USD: Four-hour chart
Trend: Further weakness 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.
