EUR/USD Price Analysis: Prints three-day downtrend on the way to 1.0630
- EUR/USD takes offers to renew intraday low during three-day downtrend.
- Clear break of 12-day-old ascending trend line, receding bullish bias of MACD favor sellers.
- Monthly horizontal support, 20-DMA appears a tough nut to crack for sellers.
EUR/USD drops below 1.0700 as bears keep reins during the third consecutive day amid Tuesday’s Asian session.
A downward sloping resistance line from late April joins the pair’s repeated failure to cross the 50-DMA to favor the EUR/USD bears. Also keeping the sellers hopeful is the recent break of an upward sloping support line from May 13, now resistance near 1.0710. Furthermore, the receding size of the bullish bars on the MACD histogram adds strength to the bearish bias.
That said, a convergence of the 20-DMA and one-month-old horizontal area appears strong support around 1.0630.
Following that, April’s low of 1.0470 could act as the last defense for EUR/USD buyers before directing the quote towards the yearly low of 1.0349.
Meanwhile, recovery moves need validation from the 1.0710 support-turned-resistance before challenging the 1.5-month-old descending trend line near 1.0750.
Also questioning the EUR/USD buyers is the previous month’s high near 1.0785 and the 1.0800 threshold.
EUR/USD: Daily 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.
