EURUSD Price Analysis: Treads water around 1.0370 key resistance
- EURUSD remains sidelined after reversing from a six-month-old horizontal hurdle.
- RSI’s retreat from overbought territory strengthens bearish bias.
- 200-DMA adds to the upside filters, sellers aim for September’s high.
EURUSD steadies around 1.0320 heading into Tuesday’s European session, keeping the week-start pullback from the key horizontal resistance. In doing so, the major currency pair seesaws around the highest levels in three months, marked the last Friday, amid bullish MACD signals.
Given the RSI’s retreat from the overbought territory, as well as the pair’s U-turn from an important resistance comprising multiple levels marked since May, around 1.0370, the EURUSD bears are likely to keep the reins.
That said, the quote’s latest weakness aims for September’s peak of 1.0200 before revisiting the 100-DMA support level surrounding 1.0030.
In a case where the EURUSD price remains weak past 1.0030, the 1.0000 parity level could challenge the downside momentum.
On the contrary, recovery moves need to provide a daily closing beyond 1.0370 to convince the EURUSD buyers.
Even so, the 200-DMA resistance near 1.0430 will be crucial to challenge the pair’s further upside.
Should the EURUSD bulls remain in the driver’s seat past 1.0430, the late June swing low near 1.0615 will be in focus.
Overall, EURUSD remains on the bear’s radar, despite the latest inaction, unless crossing the 200-DMA.
EURUSD: Daily chart
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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.
