EUR/USD Price Analysis: Corrective pullback fades below previous support, 200-SMA
|- EUR/USD wobbles in a choppy range below short-term key hurdles.
- Sellers to keep reins as unless prices cross three-week-old resistance line.
- Easing bullish bias of MACD adds to the downside signals.
EUR/USD remains on the back foot, receding taking rounds to 1.2120-25, amid a sluggish Asian session trading on Wednesday.
The currency major pair recently bounced off the 1.2100 threshold but fails to keep the recovery moves, which in turn joins sluggish MACD signals to repeat Tuesday’s pullback from the support-turned-resistance line from May 05, near 1.2145.
Also likely to challenge the quote’s recovery moves is the confluence of a 200-SMA and weekly resistance line around 1.2150.
It’s worth noting that the EUR/USD bulls are less likely to get convinced until witnessing a clear upside break of a falling trend line from May 25, surrounding the 1.2200 round figure.
Meanwhile, EUR/USD sellers can aim for the latest low near 1.2095 during further weakness.
However, May 13 bottom of 1.2051 and the 1.2000 psychological magnet, quickly followed by the previous month’s low close to 1.1985, will offer a bumpy ride for the pair bears after 1.2095.
EUR/USD four-hour chart
Trend: Further weakness expected
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