EUR/USD Price Analysis: Snaps three-day uptrend, 0.9985 in the spotlight
- EUR/USD takes offers to refresh intraday low, extends pullback from weekly high.
- Impending bear cross on MACD, RSI retreat favor sellers.
- Convergence of 200-HMA, support line of weekly triangle appears tough nut to crack for sellers.
- Buyers need to cross 1.0090 to retake control.
EUR/USD bears return after a three-day absence as the quote renews its intraday low near 1.0030 during Thursday’s Asian session.
In doing so, the major currency pair retreats inside a one-week-old symmetrical triangle amid downbeat oscillators.
That said, the MACD teases bears and the recent weakness in the RSI (14) keeps EUR/USD bears hopeful.
However, the 1.0000 psychological magnet will precede the 0.9985 support confluence, including the 200-HMA and support line of the stated triangle, to restrict the short-term downside of the pair.
In a case where the EUR/USD remains weak past 0.9985, a south-run towards the monthly low of 0.9900, marked the last week, can’t be ruled out.
Meanwhile, recovery moves may initially aim for the 50% Fibonacci retracement level of August 18-23 downside, near 1.0050.
Following that, the triangle’s upper line and the 61.8% gold ratio, respectively around 1.0080 and 1.0090, could challenge the EUR/USD buyers.
It’s worth noting that the 1.0100 threshold could act as an extra upside filter to challenge the pair’s buyers before giving them control.
EUR/USD: Hourly chart
Trend: Further weakness expected
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.
