EUR/USD Price Analysis: Euro struggles to defend corrective bounce off 1.0700
- EUR/USD fades the week-start rebound amid sluggish oscillators.
- Failure to cross the key upside hurdles during previous week’s recovery lures Euro sellers.
- One-week-old ascending support line, 78.6% Fibonacci retracement limit short-term downside.
EUR/USD retreats towards 1.0700 amid the early hours of Tuesday’s Asian session after a volatile day. That said, the Euro pair initially cheered the downbeat US data before paring the gains and closing the day around the week-start levels.
That said, the major currency pair’s latest pullback could be linked to the sluggish RSI (14) line surrounding the 50.0 levels suggesting the continuation of a lower grind. On the same line could be the MACD signals which are bearish but losing the momentum strength of late.
As a result, the EUR/USD pair’s slow grind toward the south can’t be ruled out, which in turn highlights a one-week-old rising support line, close to 1.0675 at the latest, as immediate support to watch for the Euro sellers.
Following that, the 78.6% Fibonacci retracement level of the pair’s March-April rise, near 1.0635, will gain the EUR/USD bear’s attention.
Although the likely oversold RSI around 1.0635 will prod the Euro sellers around then, any further downside could make the pair traders vulnerable to refreshing the yearly low of around 1.0480.
Alternatively, a fortnight-long descending resistance line precedes the 100-SMA level, respectively near 1.0760 and 1.0770, limiting the short-term downside of the EUR/USD pair.
In a case where the Euro buyers remain in the driver’s seat past 1.0770, the 50% Fibonacci retracement level of the quote’s aforementioned upside, near 1.0805, will be in the spotlight.
EUR/USD: Four-hour chart
Trend: Further downside expected