EUR/USD Price Analysis: Mildly bid between five-week-old horizontal support and 200-SMA
- EUR/USD seesaws around intraday high as it snaps three-day downtrend.
- Oversold RSI underpins corrective bounce off short-term key support.
- Bearish MACD signals join 200-SMA to challenge Euro bulls.
- Downside bias remains intact below 1.0830, ascending trend line from late November acts as additional support.
EUR/USD grinds near an intraday high of 1.0743 as it bounces off a five-week-old horizontal support during the early Tuesday in Europe. The major currency pair’s latest gains could also be linked to the oversold RSI (14).
However, the bearish MACD signals and the 200-SMA, close to 1.0765 by the press time, challenge the quote’s immediate upside.
Even if the quote stays firmer past 1.0765 SMA hurdle, a downward-sloping resistance line from the last Thursday, around 1.0830 at the latest, could act as the last defense of the EUR/USD bears.
Following that, the 1.0900 and the 1.1000 psychological magnet may act as buffers before directing the pair towards the latest swing high surrounding 1.1035.
Meanwhile, multiple levels marked since late December 2022, around 1.0710, challenge the EUR/USD bears. Also acting as short-term support is the 1.0700 round figure.
In a case where the EUR/USD pair remains bearish past 1.0700, an ascending support line from late November 2022, near 1.0650 as we write, will be important to watch.
It’s worth noting that the EUR/USD weakness below 1.0650 makes it vulnerable to refreshing the yearly low, currently around 1.0480.
EUR/USD: Four-hour chart
Trend: Limited recovery expected