- EUR/USD bears take a breather after three-week downside, sidelined of late.
- Key HMAs restrict immediate moves below weekly resistance line.
- Firmer RSI hints at further recovery but bulls need validation from 1.0650 to retake control.
EUR/USD pares recent losses around 1.0500 during a quiet Asian session on Monday. In doing so, the major currency pair probe the three-week downtrend as traders struggle for clear directions.
That said, a two-day-old rising support line joins the 100-HMA to restrict short-term declines of the pair around 1.0460. Also keeping the bulls hopeful is the upward sloping RSI (14) line, not overbought.
However, the 200-HMA and one-week-long resistance, respectively around 1.0540 and 1.0560, could test the EUR/USD bulls afterward.
Even if the quote rises past 1.0560, the June 10 swing high around 1.0650 could act as the last defense of the EUR/USD bears.
Meanwhile, the aforementioned support confluence near 1.0460 holds the key to the EUR/USD pair’s slump towards the yearly low of 1.0360.
During the fall, the 1.0400 level may offer intermediate support ahead of the year 2017’s trough close to 1.0340.
Overall, EUR/USD stays on the way to refresh yearly low but bears have limited downside to cheer.
EUR/USD: Hourly chart
Trend: Limited recovery expected
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