Extends pullback from 100-HMA towards 1.0400, megaphone in focus

  • EUR/USD takes offers to refresh intraday low, pares the Fed-inspired gains.
  • Sluggish RSI, MACD joins key HMA hurdles to challenge buyers.
  • Further widening of bearish consolidation move appears more likely.

EUR/USD consolidates post-Fed gains as it retreats from the 100-HMA inside a trend widening pattern near the yearly low. That said, the quote renews its daily low around 1.0435 by the press time of Thursday’s Asian session.

Considering the pair’s pullback from the 100-HMA, as well as the RSI retreat, the EUR/USD prices are likely to witness further downside, which in turn highlights the 1.0400 threshold as the immediate support.

The quote’s further downside, however, could be challenged by the support line of the weekly megaphone formation, near 1.0375, if not then the yearly low of 1.0359 will regain the bear’s attention.

On the contrary, an upside break of the 100-HMA level of 1.0475 isn’t an open call to EUR/USD buyers as a one-week-old horizontal resistance near 1.0510 will challenge the advances.

Even if the quote rises past 1.0510, the upper line of the stated trend-widening pattern, near 1.0525, will precede the 200-HMA level of 1.0588 to offer a bumpy ride to the EUR/USD pair bulls.

Overall, EUR/USD remains in a bearish trajectory but the megaphone formation hints at more volatility ahead.

EUR/USD: Hourly chart

Trend: Further weakness expected

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