- EUR/USD renews intraday low after an unimpressive week-start, lures bears amid sluggish session.
- Monday’s Doji candlestick, looming bear cross on MACD direct Euro sellers towards five-week-old rising support line.
- Seven-day-long falling trend line guards immediate recovery; 50-DMA acts as additional downside filters.
EUR/USD takes offers to refresh the intraday low near 1.0905 as it justifies the previous day’s bearish candlestick formation, as well as downbeat MACD signals, during a sluggish Tuesday morning due to the US Independence Day holiday.
Also read: EUR/USD floats above 1.0870-65 support confluence as softer US data prods hawkish Fed bias
That said, the Euro pair portrayed an indecisive closing the previous day while reversing from 1.0934, after an upbeat start of the week, which in turn marked a bearish Doji candlestick on the daily chart, suggesting a reversal of Friday’s recovery.
Additionally favoring the EUR/USD bears is the quote’s sustained trading below a downward-sloping resistance line from June 22, close to 1.0920 at the latest.
It’s worth noting that the impending bear cross on the MACD indicator adds strength to the downside bias surrounding the Euro pair.
With this, the EUR/USD price appears well-set to prod a five-week-old rising support line, near 1.0870. However, the 50-DMA acts as an extra filter toward the south and challenges the EUR/USD bears near 1.0865.
In a case where the EUR/USD remains bearish past 1.0865, Friday’s bottom of 1.0835 can act as the final defense of the Euro bulls.
On the flip side, a daily closing beyond the 1.0920 resistance can trigger a run-up toward the 1.1000 psychological magnet before directing the bulls toward the previous monthly high of around 1.1015.
It should be noted that the EUR/USD pair’s rise past 1.1015 enables it to challenge the yearly peak of 1.1095.
EUR/USD: Daily chart
Trend: Further 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
AUD/USD faces potential extra gains near term
Further weakness in the US Dollar allowed AUD/USD to rapidly forget Friday’s pullback and resume the uptrend well north of 0.6700 the figure amidst quite an auspicious start to the new trading week.
EUR/USD now retargets the 1.1150 region
EUR/USD managed to regain upside impulse and break above the 1.1100 barrier to print new multi-day peaks on the back of increasing downward pressure in the Greenback ahead of the key FOMC meeting.
Gold consolidates gains near fresh all-time highs
Gold trades in a narrow range above $2,580 after touching a new record-high near $2,590 earlier in the day. The benchmark 10-year US Treasury bond yield holds above 3.6% ahead of the Fed meeting and makes it difficult for XAU/USD to find direction.
Ripple joins hands with Hedera and Aptos Labs to launch MiCA Crypto Alliance
Ripple (XRP) made a key announcement alongside other founding members of a crypto alliance. The DLT Science Foundation is behind the effort, Ripple partnered with Hedera and Aptos Labs.
Five Fundamentals for the week: Fed overtowers pivotal week for Gold, stocks and the US Dollar Premium
The Fed's first rate cut stands out as economic uncertainty mounts. US Retail Sales and Jobless Claims are of high interest. Rate decisions by central banks in the UK and Japan are also pivotal.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.