EUR/USD Price Analysis: Retreats from two-month-old resistance towards 1.0200
- EUR/USD takes offers to refresh intraday low, pares the biggest daily gains in more than a week.
- RSI pullback, presence of multiple resistance challenge buyers.
- Three-week-old ascending trend line restricts immediate downside.
EUR/USD renews intraday low around 1.0235 as it takes a U-turn from the key resistance line during Friday’s Asian session.
In doing so, the major currency pair also tracks a retreat of the RSI (14), as well as portrays the markets’ cautious mood ahead of the US Nonfarm Payrolls (NFP) data for July.
With this, the EUR/USD prices are likely to witness further downside towards the 1.0200 threshold before the 23.6% Fibonacci retracement level of the June-July downturn challenges the bears around 1.0145.
However, an upward sloping support line from July 18, close to 1.0125 at the latest, could challenge the pair bears afterward, if not then the parity level and the recent low near 0.9950 will be in focus.
Alternatively, an upside break of the aforementioned resistance line, near 1.0250 by the press time, will jostle with the 1.0265-70 resistance confluence including the 38.2% Fibonacci retracement level and the 200-SMA.
It’s worth noting that, the EUR/USD run-up beyond 1.0270 needs validation from the monthly horizontal resistance area, around 1.0280 to give control to the bulls.
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.
