EUR/USD Price Analysis: Sellers cheer three-week-old support break around 1.0850
- EUR/USD remains pressured after breaking short-term key support.
- Bearish MACD signals, downbeat RSI adds strength to the downside bias targeting 100-SMA.
- Double tops around 1.0930 also favor sellers to keep the reins.
EUR/USD seesaws around 1.0850 as bears take a breather after breaking important support. With this, the major currency pair confirms its place on the seller’s radar even if it probes the three-day downtrend with its latest inaction.
Not only the trend line breakdown but the bearish MACD signals and the downbeat RSI (14), not oversold, also keep the EUR/USD sellers hopeful. On the same line could be the double-top bearish formation marked around 1.0930.
As a result, the quote’s further downside towards the 100-bar Simple Moving Average (SMA), close to 1.0825 by the press time, appears imminent.
However, the 200-SMA and January 10 low, respectively near 1.0720 and 1.0710, could challenge the EUR/USD bears afterward.
In a case where the EUR/USD pair remains bearish past 1.0710, its slump toward the monthly low near 1.0480 can’t be ruled out.
Alternatively, recovery moves must cross the support-turned-resistance line from January 10, close to 1.0860 at the latest, to tease EUR/USD buyers.
Even so, the aforementioned double tops near 1.0930 will be a tough nut to crack for the pair bulls, a break of which could quickly propel the price towards the 1.1000 round figure.
Should the EUR/USD pair remains firmer past 1.1000, its rally toward January 2022 low near 1.1120 can’t be ruled out.
EUR/USD: Four-hour chart
Trend: Further 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.
