EUR/USD Price Analysis: Struggles to defend 21-DMA breakout

EUR/USD fades bounce off short-term key support, remains pressured of late.
Steady RSI, sluggish MACD line also challenge recovery moves.
50-DMA adds to the upside filters, three-week-old support line in focus.

Anil Panchal FXStreet

EUR/USD retreats towards 1.1300 after the Fed Minutes-led losses challenged the 21-DMA breakout. That said, the quote drops to 1.1309 during Thursday’s Asian session.

As the MACD line teases a bear-cross to the signal line, as well as steady RSI, the latest weakness is likely to continue.

However, a clear downside break of the 21-DMA level of 1.1300 becomes necessary for the bears to aim for an ascending support line stretched from mid-December 2021, around 1.1280 by the press time.

Also acting as the key short-term support is a six-week-long rising trend line near 1.1260, a break of which will direct the quote towards the last year’s bottom of 1.1186.

Alternatively, sustained trading beyond the 1.1300 threshold will direct the EUR/USD prices towards the 50-DMA level surrounding 1.1360.

Even so, the pair buyers will remain cautious until the quote rises past the horizontal area established since mid-November, near 1.1385.

EUR/USD: Daily chart

Trend: Further weakness expected

Additional impotant levels

Overview
Today last price	1.131
Today Daily Change	0.0025
Today Daily Change %	0.22%
Today daily open	1.1285

Trends
Daily SMA20	1.1309
Daily SMA50	1.1369
Daily SMA100	1.1535
Daily SMA200	1.1749

Levels
Previous Daily High	1.1322
Previous Daily Low	1.1272
Previous Weekly High	1.1386
Previous Weekly Low	1.1274
Previous Monthly High	1.1386
Previous Monthly Low	1.1222
Daily Fibonacci 38.2%	1.1291
Daily Fibonacci 61.8%	1.1303
Daily Pivot Point S1	1.1264
Daily Pivot Point S2	1.1243
Daily Pivot Point S3	1.1214
Daily Pivot Point R1	1.1314
Daily Pivot Point R2	1.1343
Daily Pivot Point R3	1.1364

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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