- EUR/USD takes offers to refresh intraday low, drops to fresh low in one-week.
- Five-week-old rising trend line, 100-DMA prod Euro bears.
- Clear downside break of multi-day-old rising trend line, bearish MACD signals favor sellers.
EUR/USD prints a two-day losing streak while falling to the fresh one-week low around 1.0930 amid very early Monday morning in Europe.
In doing so, the Euro pair extends the previous week’s U-turn from the support-turned-resistance line stretched from late May towards breaking a short-term key support line and the 100-DMA. Adding strength to the downside bias are the bearish MACD signals and the market’s risk-off mood, not to forget the firmer US Treasury bond yields.
Also read: EUR/USD sellers attack 1.0930 support on firmer yields, downbeat ECB concerns, focus on Fed Minutes
That said, a daily closing beneath the 100-DMA support of 1.0930 becomes necessary for the EUR/USD bears to prod the monthly low of around 1.0910.
Also acting as a downside filter is the 61.8% Fibonacci retracement of May-July upside, near 1.0880, as well as the previous monthly bottom surrounding 1.0835.
Meanwhile, a daily closing beyond the ascending support line from July 06 can again try to cross the multi-day-old previous support line, close to 1.1040 at the latest.
Following that, the monthly peak of around 1.1065 and the 1.1100 round figure may prod the Euro buyers before directing them to the yearly peak marked in July around 1.1275.
EUR/USD: Daily chart
Trend: Further downside expected
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