EUR/USD Price Analysis: Stays pressured towards 50-DMA support
- EUR/USD holds lower grounds at one-month bottom, steadies after three-day downtrend.
- Downbeat MACD signals, RSI (14) join trend line breakdown to favor sellers.
- Three-month-old ascending trend line adds to the downside filters.
- Buyers need validation from 1.0930 to retake control.
EUR/USD licks its wounds at the lowest levels in a month, depressed around 1.0725 during early Tuesday in Asia. That said, the major currency pair dropped during the last consecutive three days.
Not only the three-day downtrend but the quote’s sustained downside break of an ascending trend line from early November join the bearish MACD signals and the downbeat RSI (14), not oversold, to keep sellers hopeful.
As a result, the EUR/USD pair’s further downside towards the 50-DMA, around 1.0690, appears imminent.
However, a three-month-long upward-sloping trend line, close to 1.0655 could challenge the EUR/USD bears afterward.
In a case where the EUR/USD pairs remain bearish past 1.0655, the previous monthly low near 1.0480 and the 200-DMA level surrounding 1.0320 will gain the market’s attention.
Alternatively, recovery remains elusive unless the quote stays below the support-turned-resistance line, around 1.0850.
Even so, multiple tops marked around 1.0930 appears more important as the validation point for the EUR/USD buyers.
Following that, a run-up towards the 1.1000 psychological magnet and then refreshing the monthly high, currently around 1.1030, can’t be ruled out.
Overall, EUR/USD is likely to remain bearish with the 50-DMA and ascending trend line from November 11 acting as immediate support to watch.
EUR/USD: Daily 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.
