EUR/USD Price Analysis: Renews two-month low near 1.0750, multi-month-old support eyed
- EUR/USD drops to the lowest levels since late March, down for the third consecutive day.
- Clear reversal from 100-DMA hurdle, downside break of previous weekly bottom joins bearish MACD signals to favor Euro bears.
- Downbeat RSI conditions suggest limited room towards the south, highlighting six-month-old ascending support line.
EUR/USD holds lower grounds as bears prod the 1.0750 mark after falling to the fresh low since late March during early Thursday in Asia. In doing so, the Euro pair drops for the third consecutive day while slipping beneath the weekly low, as well as the two-month bottom marked the last week.
It should be noted that the Euro pair’s U-turn from the 100-DMA hurdle and bearish MACD signals add strength to the bearish bias. However, the RSI (14) line is nearly oversold and hence suggests limited downside room before the next leg of the south run.
As a result, the EUR/USD bears are well set to break the 1.0750 support and approach the 1.0700 round figure. However, an upward-sloping support line from late November 2022, close to 1.0690 by the pres time, gains the market’s attention.
In a case where the Euro pair breaks the aforementioned support line, the odds of witnessing a slump toward March’s low of 1.0515 and then toward the yearly low marked in January near 1.0480 can’t be ruled out.
On the other hand, a daily closing beyond the 100-DMA level of 1.0815 isn’t an open welcome for the EUR/USD bulls as the previous support line from September 2022, around 1.0920 at the latest, holds the key for the buyer’s entry.
Following that, the 1.1000 psychological magnet may act as an extra barrier for the Euro buyers targeting further upside of the pair.
EUR/USD: Daily chart
Trend: Limited 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.
