- EUR/USD takes offers to refresh intraday low, down for the third consecutive day.
- ECB policymakers keep suggesting further rate hikes and so do Fed clues.
- RSI conditions suggest bottom-picking, multiple supports challenge Euro bears.
- Bulls remain cautious below 1.1100 while 1.0970 guards immediate recovery.
EUR/USD drops for the third consecutive day amid early Tuesday morning in Europe, refreshing intraday low near 1.0920 by the press time. In doing so, the Euro pair justifies the failure to cross the 1.0970-60 area in the last week, as well as a three-day-old falling resistance line.
That said, the Euro pair fails to justify hawkish signals from the European Central Bank (ECB) Officials amid the Federal Reserve (Fed) updates which have been suggesting higher rates of late.
Also read: EUR/USD prods bears above 1.0900 as ECB hawks gain more acceptance than the Fed ones
It’s worth noting that the multiple tops marked around 1.1100 in April and May also highlight the Euro pair’s inability to defend the bullish bias. However, the below 50 conditions of the RSI (14) line challenge the EUR/USD bears.
The same highlights descending support line from Friday, around 1.0900 as an immediate key level to watch for the Euro bears.
Following that, a convergence of the 100-Hour Moving Average (HMA) and a one-week-old ascending trend line, near 1.0890, will challenge the EUR/USD bears.
It’s worth noting that, an upward-sloping support line from June 07, close to 1.0850 at the latest, acts as the last defense of the EUR/USD buyers, a break of which will confirm the short-term bearish trend of the major currency pair.
On the contrary, a downward-sloping resistance line from Friday, near 1.0920 precedes the latest peak of 1.0970 to restrict the immediate EUR/USD upside.
However, a clear break of the 1.0970 won’t hesitate to challenge the 1.1000 psychological magnet and then aim for the yearly highs marked near the 1.1100 zone.
EUR/USD: Hourly chart
Trend: Limited downside expected
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD stays in positive territory above 1.0850 after US data
EUR/USD clings to modest daily gains above 1.0850 in the second half of the day on Friday. The improving risk mood makes it difficult for the US Dollar to hold its ground after PCE inflation data, helping the pair edge higher ahead of the weekend.
GBP/USD stabilizes above 1.2850 as risk mood improves
GBP/USD maintains recovery momentum and fluctuates above 1.2850 in the American session on Friday. The positive shift seen in risk mood doesn't allow the US Dollar to preserve its strength and supports the pair.
Gold rebounds above $2,380 as US yields stretch lower
Following a quiet European session, Gold gathers bullish momentum and trades decisively higher on the day above $2,380. The benchmark 10-year US Treasury bond yield loses more than 1% on the day after US PCE inflation data, fuelling XAU/USD's upside.
Avalanche price sets for a rally following retest of key support level
Avalanche (AVAX) price bounced off the $26.34 support level to trade at $27.95 as of Friday. Growing on-chain development activity indicates a potential bullish move in the coming days.
The election, Trump's Dollar policy, and the future of the Yen
After an assassination attempt on former President Donald Trump and drop out of President Biden, Kamala Harris has been endorsed as the Democratic candidate to compete against Trump in the upcoming November US presidential election.