Snaps two-day uptrend as bears approach 1.0490 support

  • EUR/USD takes offers to refresh intraday low after breaking weekly triangle the previous day.
  • Impending bear cross on the MACD, sustained pullback from the 200-SMA keeps sellers hopeful.
  • Bulls need validation from 1.0645 to retake control, weekly support line probes immediate declines.

EUR/USD renews intraday low as bears attack 1.0500 threshold on their return after a two-day absence. That said, the major currency pair justifies the previous day’s downside break of a symmetrical triangle during Wednesday’s Asian session.

In addition to the triangle breakdown, a looming bear cross on the MACD and a clear U-turn from the 200-SMA also favor the pair sellers.

However, a one-week-old ascending support line, near 1.0490 by the press time, challenges the EUR/USD pair’s nearly downside.

Following that, the monthly low of 1.0359 and the yearly low surrounding 1.0350 could probe the pair sellers before directing them to the July 2002 peak of 1.0200.

Alternatively, recovery remains elusive until the quote stays below the 200-SMA level of 1.0590. Also acting as an upside filter is the June 10 swing high near 1.0645.

It should be noted that the aforementioned triangle’s support and the previous weekly top, respectively around 1.0555 and 1.0600, could offer additional upside filters during the EUR/USD pair’s recovery.

Overall, bears retake control of the major currency pair as traders brace for Fed Chair Jerome Powell’s testimony.

EUR/USD: four-hour chart

Trend: Further weakness expected

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