EUR/USD Price Analysis: Mid-1.0700s appear tough nut to crack for Euro bears
- EUR/USD bears attack two-month-old horizontal support amid the oversold RSI conditions.
- 13-day-old previous support line, bearish MACD signals challenge corrective bounce of Euro pair.
- Yearly lows will be in danger on 1.0730 break while recovery remains elusive below 1.0900.
EUR/USD remains depressed at the lowest levels in two months, down for the fourth consecutive day, as Euro bears poke short-term key support surrounding 1.0750 heading into Friday’s European session.
Apart from the multiple supports marked since March 13, the oversold conditions of the RSI (14) line also challenge the Euro pair, not to forget the bullish sentiment surrounding the US Dollar.
It’s worth noting, however, that the bearish MACD signals and the previous support line from May 02, close to 1.0795 by the press time, quickly followed by the 1.0800 round figure, challenges the Euro’s corrective bounce, if any.
Also acting as an upside filter is the 50% Fibonacci retracement of March-May upside, near 1.0805, as well as the late April swing low of around 1.0910.
In a case where the EUR/USD remains firmer past 1.0910, the odds of witnessing a run-up toward the 1.1000 round figure and then to the monthly high near 1.1095 can’t be ruled out.
On the flip side, a daily closing beneath the aforementioned broad horizontal support zone of around 1.0760-30, will be detrimental for the EUR/USD pair price as it can make it vulnerable to testing the mid-March low surrounding 1.0515.
During the anticipated fall, the 1.0700 and 1.0600 round figures may check the Euro bears.
EUR/USD: Four-hour 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.
