- EUR/USD remains pressured around three-month low tested the previous day.
- Failures to bounce off crucial horizontal line, downbeat Momentum keep bears hopeful.
- Two-month-old support line, RSI conditions to test further downside.
EUR/USD prints a five-day downtrend, after refreshing the lowest level since April 06, around 1.1845 during the initial Asian session on Friday. In doing so, the currency major fades bounce off the key horizontal support line from early March amid descending Momentum line.
Although bearish impulsive gains accolades, a downward sloping trend line from May 05 will challenge EUR/USD bears around the 1.1800 threshold amid nearly oversold RSI conditions.
Should the quote fails to portray a corrective pullback from 1.1800, the 1.1760-65 horizontal area comprising multiple levels marked during late March and early April could challenge the south-run to the yearly low surrounding 1.1700.
Meanwhile, recovery moves need to cross the 1.1975–90 resistance region, encompassing 100-SMA, May’s low and late June tops, to restore the short-term buyers’ confidence. However, the trend change becomes less anticipated until the EUR/USD prices remain below the early June lows near 1.2100.
It’s worth noting though that the intermediate moves to the 1.1900 round figure and 1.1930 can’t be ruled out.
EUR/USD four-hour chart
Trend: Further weakness expected
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