EUR/USD Price Analysis: Looks set for further weakness below 1.1800
- EUR/USD struggles to regain 1.1800, remains sidelined of late.
- MACD eases bullish bias, sustained trading below the key SMA, trend line resistance also keeps sellers hopeful.
- Bulls need to cross July’s top for conviction.
EUR/USD portrays a lackluster start to Tuesday’s Asian session, after marking a corrective pullback the previous day. That said, the quote seesaws around 1.1775-80 by the press time.
The major currency pair’s failures to extend the bounce off 1.1767 join the recently easing bullish bias of the MACD histogram to favor the EUR/USD pair sellers. On the same line is the quote’s sustained trading below 100 and 200-SMA, as well as a downward sloping trend line from June 25.
It’s worth noting, however, that a confluence of the one-week-old ascending trend line and monthly horizontal area, around 1.1750, offers a tough challenge to the pair bears ahead of directing them to the yearly low surrounding the 1.1700 threshold.
In a case where the EUR/USD prices drop below the 1.1700 psychological magnet, also the key support, the pair becomes vulnerable to print a 100-pip south-run towards late 2020 levels surrounding the 1.1600 mark.
Alternatively, 100-SMA and 200-SMA, respectively around 1.1805 and 1.1815, guard the quote’s short-term recovery moves ahead of a downward sloping trend line from late June near 1.1875.
Even if the EUR/USD bulls cross the stated resistance line, July’s high near 1.1910 will challenge the further upside.
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.
