EUR/USD Price Analysis: A failure to resist above 200-DMA recalls the sellers
|- EUR/USD failed to close Wednesday above 200-DMA at 1.1890.
- 21-DMA at 1.1853 back in sight for EUR sellers.
- Bearish RSI, USD rebound keep EUR/USD vulnerable.
EUR/USD is holding the lower ground while hovering within Wednesday’s trading range in early Asian dealings, as the US dollar remains broadly in demand amid tepid close on Wall Street.
Markets weigh in US President Joe Biden’s remarks on his infrastructure plans, FOMC minutes and a recovery in the Treasury yields heading into the earnings season and Fed Chair Jerome Powell’s speech.
From a near-term technical perspective, EUR/USD did take out the 200-daily moving average (DMA) at 1.1890 but failed to sustain above the latter.
Sellers returned and prompted the spot to finish the day near just above the 1.1860 level. The major currently trades at 1.1870, almost unchanged on the day.
The 14-day Relative Strength Index (RSI) trades flat just below the 50.00 level, suggesting that the bearish bias remains intact for EUR/USD.
Therefore, a test of the 21-DMA at 1.1853 remains on the cards following a breach of Wednesday’s low of 1.1861.
Further south, Tuesday’s low of 1.1795 could be put at risk.
EUR/USD: Daily chart
Meanwhile, the sellers remain hopeful so long as the main currency pair holds below the 200-DMA.
A sustained break above the latter is needed to revive the recovery momentum towards the bearish 50-DMA at 1.1973.
EUR/USD: Additional levels
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