EUR/USD Price Analysis: Refreshes 2021 low near 1.1700, bumpy road ahead
- EUR/USD drops to the fresh low in 2021 during three-day downtrend.
- Downbeat MACD, RSI joins sustained trading below 20-DMA to keep sellers hopeful.
- Seven-week-old falling trend line adds to the downside filter, short-term channel resistance challenges bulls.
EUR/USD remains on the back foot for the third consecutive day, drops to the lowest levels in 2021 during early Wednesday morning in Asia. That said, the pair sellers attack the 1.1700 threshold by the press time.
Although the major currency pair’s sustained trading below 20-DMA joins sluggish MACD and RSI line to favor sellers, the lower line of the descending trend channel extended from late June, around 1.1685 tests the further declines.
It’s worth noting though that the quote’s sustained trading below 1.1685 will make it vulnerable to drop towards the November 2020 bottom surrounding 1.1600.
Alternatively, corrective pullback needs to overcome the 20-DMA immediate hurdle, around 1.1790, for short-term conviction.
However, any further upside will be challenged by the stated channel’s upper line and July’s top, respectively around 1.1870 and 1.1900.
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.
