EUR/USD Price Analysis: Struggles to defend bounce off 100-DMA below 1.0900 resistance confluence
- EUR/USD remains sidelined after bouncing off six-week low.
- Downbeat RSI (14) line, 100-DMA favors underpin recovery move.
- Convergence of 50-DMA, previous support line from September 2022 highlights 1.0900 hurdle.
- Euro buyers can remain hopeful beyond 1.0480, multiple levels prod bulls past 1.1000.
EUR/USD seesaws around 1.0840 as the previous day’s corrective bounce from 1.5-month low fades during the early hours of Thursday.
That said, the downbeat RSI (14) conditions and the 100-DMA support triggered the Euro pair’s rebound from the 1.0800 mark on Wednesday. However, a bearish MACD signal and cautious mood ahead of a speech from European Central Bank (ECB) President Christine Lagarde, as well as amid US default jitters, check the pair buyers.
Hence, the EUR/USD recovery needs validation and highlights a convergence of the 50-DMA and the support-turned-resistance line stretched from September 2022, close to 1.0900 by the press time, as the key for the pair’s further advances.
Following that, the early May low of near 1.0940 and February’s high surrounding 1.1035 can challenge the buyers.
Adding to the upside filters are multiple tops marked during April and May around 1.1090 and 1.1100.
On the flip side, a daily closing below the 100-DMA level of near 1.0800 will be enough to recall the EUR/USD sellers.
In that case, the 23.6% Fibonacci retracement level of the pair’s run-up from September 2022 to April 2023, around 1.0725, can act as an extra filter to the south.
It’s worth noting that a broad support zone comprising multiple levels marked since November 2022, around 1.0520-480, becomes a tough nut to crack for the EUR/USD sellers.
To sum up, EUR/USD is likely to remain bearish despite the latest corrective bounce.
EUR/USD: Daily chart
Trend: Limited recovery 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.
