EUR/USD Price Analysis: Stays defensive above 1.0690 resistance-turned-support

EUR/USD seesaws near seven-month high, snaps two-day winning streak.
One-week-old previous resistance puts a floor under the prices even as buyers appear to run out of steam.
50-HMA, ascending trend line from December 22 act as additional downside filters.

Anil Panchal FXStreet

EUR/USD portrays exhaustion of the previous bull-run amid Monday’s holiday-inspired lackluster trading day.

Also read: EUR/USD portrays tepid start to 2023 after a volatile year, ECB vs. Fed talks, US NFP eyed

In doing so, the major currency pair fades the previous day’s upside break of the one-week-old resistance line, now support.

The EUR/USD pair’s retreat also takes clues from the bearish MACD signals and steady RSI, adding strength to the bearish bias.

However, a clear downside break of 1.0690 becomes necessary for the major currency pair to recall the bears.

Even so, 50-HMA and an upward-sloping support line from December 22, respectively near 1.0665 and 1.0630, could restrict the quote’s further downside.

In a case where the EUR/USD price remains weak past 1.0630, the late December swing low near 1.0570 could lure the pair bears.

Alternatively, buyers need validation from the immediate resistance line, as well as the monthly, respectively around 1.0708 and 1.0713, to direct prices towards May 2022 peak surrounding 1.0785.

Following that, the 1.0800 could probe the EUR/USD bulls before highlighting the late April 2022 swing high of 1.0936 as the key hurdle to the north.

Overall, EUR/USD remains on the buyer’s radar but a short-term pullback appears to brew of late.

EUR/USD: Hourly chart

Trend: Downside expected

Additional important levels

Overview
Today last price	1.0702
Today Daily Change	-0.0004
Today Daily Change %	-0.04%
Today daily open	1.0706

Trends
Daily SMA20	1.0595
Daily SMA50	1.0347
Daily SMA100	1.0126
Daily SMA200	1.0325

Levels
Previous Daily High	1.0713
Previous Daily Low	1.0639
Previous Weekly High	1.0713
Previous Weekly Low	1.0607
Previous Monthly High	1.0736
Previous Monthly Low	1.0393
Daily Fibonacci 38.2%	1.0685
Daily Fibonacci 61.8%	1.0667
Daily Pivot Point S1	1.0658
Daily Pivot Point S2	1.0611
Daily Pivot Point S3	1.0584
Daily Pivot Point R1	1.0733
Daily Pivot Point R2	1.076
Daily Pivot Point R3	1.0808

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.

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