EUR/USD Price Analysis: Stays directed towards 1.1230 inside weekly falling channel
- EUR/USD remains pressured within short-term bearish chart pattern.
- Downbeat MACD signals, break of two-week-old previous support adds to the bearish bias.
- Horizontal area from November 22 offers immediate support, descending trend line from late October, 200-SMA add to the upside filters.
EUR/USD struggles to keep the latest rebound from 1.1266 around the support-turned-resistance line during the initial Asian session on Tuesday. That said, the major currency pair stays inside a nearby descending trend channel formation around 1.1285 by the press time.
In addition to the quote’s downside break of a short-term support line, now resistance, as well as a falling channel formation, bearish MACD signal also keep EUR/USD sellers hopeful.
The current weakness, however, may take a breather around a fortnight-long horizontal zone surrounding 1.1235-30 before directing the EUR/USD bears to the yearly low near 1.1186.
Given the pair’s declines past 1.1186, June 2020 low near 1.1170 and March 2020 peak of 1.1147 will be in focus.
Alternatively, the stated channel’s resistance line around 1.1310 guards short-term advances of the EUR/USD pair.
On a clear break of 1.1310, a descending resistance line from October 28 and 200-SMA, respectively near 1.1385 and 1.1440, will be crucial hurdles to follow for witnessing a change in the current bearish trend.
EUR/USD: Four-hour chart
Trend: Further weakness 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.
