EUR/USD Price Analysis: Retreats from 1.0920 resistance confluence as EU/US PMIs loom
- EUR/USD takes offers to refresh intraday low while reversing from short-term key resistance confluence.
- Convergence of 50-SMA, one-week-old descending resistance line limits immediate Euro upside.
- Upbeat MACD signals, steady RSI keeps bullish bias intact unless breaking 200-SMA support.
- EU/US PMIs for June will entertain intraday traders, Fed Minutes, US NFP will be key to watch for clear directions.
EUR/USD takes offers to consolidate the major currency pair’s U-turn from the lowest levels in two weeks, mildly offered near 1.0900 during Monday’s mid-Asian session. In doing so, the Euro pair retreats from a convergence of the 50-SMA and a two-week-old descending resistance line.
That said, the bullish MACD signals and the steady RSI (14) line contrast with the EUR/USD pair’s latest retreat to suggest the quote’s intraday fall toward an ascending support line from May 31, close to 1.0860.
However, the latest bottom of around 1.0835 and the 200-SMA level of near 1.0815 will restrict the EUR/USD pair’s further downside.
Alternatively, an upside break of the 1.0920 resistance confluence, comprising the 50-SMA and the immediate descending trend line, won’t hesitate to challenge the monthly high of around 1.1015.
Overall, the EUR/USD pair buyers are likely to keep the reins unless breaking the 1.0815 support levels even if the short-term downside is expected.
On a different page, the final readings of Germany and Eurozone HCOB PMIs for June and the US ISM Manufacturing PMI for the said month will entertain intraday traders.
Also read: EUR/USD grinds higher past 1.0900 ahead of Fed Minutes, NFP
EUR/USD: Four-hour 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.
