EUR/USD Price Analysis: Extends pullback from 200-HMA towards weekly support line
- EUR/USD remains sidelined after stepping back from the key HMA resistance.
- Sluggish MACD, steady RSI also favors the continuation of recent weakness.
- Weekly support line holds the gate for further downside targeting 2022 low.
- 61.8% Fibonacci retracement level adds to the upside filters.
EUR/USD treads water around 1.0940 amid Tuesday’s initial Asian session, after a positive start to the week.
Even so, the major currency pair holds onto the previous day’s pullback from the 200-HMA, which in turn joins downbeat MACD and steady RSI to suggest the quote’s further grinding towards the south.
That said, an upward sloping trend line from March 07 will join the 23.6% Fibonacci retracement (Fibo.) of February 25 to March 07 downside to restrict short-term downside near 1.0915.
In a case where EUR/USD drops below 1.0915, the 1.0900 threshold may act as an intermediate halt ahead of directing the quote to the recent multi-month low of 1.0806.
Alternatively, recovery moves need to cross the 200-HMA level of 1.0975 to gain the market’s attention.
Following that, the 1.1000 round figure and the 61.8% Fibo. near 1.1095 will lure the EUR/USD bulls.
It’s worth noting, however, that a clear run-up beyond 1.1095 will help buyers to challenge the monthly high around 1.1235.
EUR/USD: Hourly chart
Trend: Bearish
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
