EUR/USD Price Analysis: Euro bears approach 1.0825 support confluence on 50-DMA break


  • EUR/USD remains depressed at the lowest level in a week after breaking the key DMA support.
  • Bearish MACD signals, steady RSI line add strength to downside bias.
  • Convergence of 100-DMA, fortnight-old descending trend line appears short-term key support.
  • Euro bulls should remain cautious below two-week-long resistance line.

EUR/USD holds lower grounds at the weekly bottom surrounding 1.0850 amid the early hours of Thursday in Asia. In doing so, the Euro pair justifies the previous day’s closing beneath the 50-DMA, the first clear break in three weeks, while also keeping the bears on the table after a three-day downtrend.

Not only the 50-DMA break but the bearish MACD signals and a near-50.0 RSI (14) line also suggests further downside of the EUR/USD pair.

However, a convergence of the 100-DMA and a fortnight-old descending trend line, around 1.0825 by the press time, becomes a tough nut to crack for the Euro bears.

Following that, an ascending support line from May 31, near 1.0800, becomes the last defense of the EUR/USD buyers before directing the quote toward the 50% and 61.8% Fibonacci retracements of January-April upside, respectively near 1.0790 and 1.0715.

Alternatively, the 50-DMA and 38.2% Fibonacci retracement together guard the EUR/USD recovery around 1.0865.

Even if the major currency pair crosses the 1.0865 hurdle, a downward-sloping resistance line from June 23, close to 1.0900 at the latest, will be in the spotlight.

Overall, EUR/USD remains on the back foot but the downside room appears limited.

EUR/USD: Daily chart

Trend: Limited downside expected

Additional important levels

Overview
Today last price 1.0854
Today Daily Change -0.0025
Today Daily Change % -0.23%
Today daily open 1.0879
 
Trends
Daily SMA20 1.0876
Daily SMA50 1.0867
Daily SMA100 1.0823
Daily SMA200 1.0604
 
Levels
Previous Daily High 1.0916
Previous Daily Low 1.0877
Previous Weekly High 1.0977
Previous Weekly Low 1.0835
Previous Monthly High 1.1012
Previous Monthly Low 1.0662
Daily Fibonacci 38.2% 1.0892
Daily Fibonacci 61.8% 1.0901
Daily Pivot Point S1 1.0865
Daily Pivot Point S2 1.0851
Daily Pivot Point S3 1.0826
Daily Pivot Point R1 1.0905
Daily Pivot Point R2 1.093
Daily Pivot Point R3 1.0944

 

 

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