EUR/USD technical analysis: Slides below 200-hour SMA, refreshes weekly low
- The EUR/USD pair failed to capitalize on its early uptick to the 1.1300 handle and turned lower for the second consecutive session, hitting fresh weekly lows in the last hour.
- The downtick dragged the pair below a two-week-old ascending trend-line support and a subsequent slide below 200-hour SMA sets the stage for further intraday weakness.
Meanwhile, technical indicators have been gaining negative momentum on hourly charts and further reinforce the bearish set-up, albeit bullish oscillators might prompt some dip-buying interest and help limit further downside.
Hence, any further slide towards mid-1.1200s – marking 38.2% Fibonacci retracement level of the 1.1116-1.1348 recent up-move, might still be seen as a buying opportunity, which if broken will confirm a near-term bearish breakdown.
Below the mentioned support, the pair might turn vulnerable to accelerate the slide towards testing the 1.1200 round figure mark – coinciding with 61.8% Fibo. level, which should act as a key pivotal point for the next leg of a directional move.
On the flip side, the 1.1300 handle now becomes immediate resistance and is followed by the 1.1325-30 supply zone, which if cleared might negate the short-term bearish bias and lift the pair further towards reclaiming the 1.1400 handle.
EUR/USD 1-hourly chart
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Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
