Following that, a horizontal area comprising multiple levels marked since early July, surrounding 1.1140–50 will be a crucial upside hurdle for the EUR/USD buyers to watch before challenging the yearly top marked in July around 1.1275.
EUR/USD: Daily chart
Also read: EUR/USD stays defensive around 1.1000 as German data prods ECB hawks, Fed talks appear mixed
With this, the EUR/USD pair appears all set to drop towards the 50% Fibonacci retracement of its May-July upside, near 1.0950. However, the 100-DMA support of around 1.0930–25 can challenge the Euro sellers afterward.
That said, the Euro pair’s latest weakness could be linked to its inability to cross a downward-sloping resistance line from July 18 amid broadly firmer US Dollar, backed by upbeat Treasury bond yields.
On the flip side, a daily closing beyond the immediate resistance line, close to 1.1010 by the press time, needs validation from the previous support line stretched from May, around 1.1060 at the latest.
In a case where the Euro pair remains bearish past the 100-DMA support, the 61.8% Fibonacci retracement level, also known as the golden Fibonacci ratio, can challenge the EUR/USD bears near 1.0875.
EUR/USD takes offers to refresh intraday low, extends the week-start reversal from a short-term resistance line amid the mid-Asian session on Tuesday.
Adding credence to the downside bias are the bearish MACD signals and the previous break of an ascending trend line stretched from May 31.
- EUR/USD takes offers to refresh intraday low during two-day losing streak.
- Euro sellers remain hopeful as bearish MACD signals, previous support break join failure to cross immediate resistance line.
- 50% Fibonacci retracement limits intraday fall while 100-DMA is the key support to watch during further downside.
- US Dollar traces firmer yields to edge higher amid sluggish session.
Trend: Further downside expected