- EUR/USD holds lower ground while paring the biggest daily loss in six months.
- Bearish MACD signals, steady RSI add strength to the downside bias targeting 100-HMA, 23.6% Fibonacci retracement.
- Bulls need validation from 0.9800 to retake control.
EUR/USD consolidates Wednesday’s heavy gains as sellers flirt with 0.9680-85 heading into Thursday’s European session. In doing so, the major currency pair pulls back from a one-week-old descending resistance line while dropping back towards the 20-year low marked the previous day.
The bearish MACD signals and an absence of oversold RSI (14) add strength to the downside bias.
However, a convergence of the 100-HMA and 23.6% Fibonacci retracement of the September 19-28 downturn offers a tough nut to crack for the EUR/USD sellers around 0.9655.
Following that, the previous resistance line from Monday, near 0.9615 by the press time, could challenge the pair bears before directing them to the recently flashed multi-year low near 0.9535.
Alternatively, recovery moves need to cross the aforementioned resistance line, close to 0.97365 at the latest, to convince the intraday buyers.
Even so, the previous day’s high at around 0.9750 and September 22 swing low near 0.9805-10 could challenge the EUR/USD bulls before giving them the throne.
Overall, EUR/USD is likely to remain on the bear’s radar but the 0.9655 level may test intraday sellers.
EUR/USD: Hourly chart
Trend: Further downside expected
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