EUR/USD Price Analysis: Euro bears eye 1.0860 ahead of German inflation, Fed Chair Powell’s speech
- EUR/USD takes offers to refresh intraday low, pokes three-week-old rising support line.
- Bearish MACD signals, broad US Dollar strength favor Euro sellers targeting 200-EMA support.
- Preliminary readings of Germany’s inflation data, Fed Chair Powell’s speech will be crucial for clear directions.
EUR/USD extends the previous day’s downturn towards piercing a three-week-old rising support line, around 1.0895 by the press time, as markets prepare for German inflation and Federal Reserve (Fed) Chairman Jerome Powell’s speech on early Thursday.
Also read: EUR/USD floats above 1.0900 as ECB hawks jostle with upbeat US Banking Stress Test, Fed Powell’s speech
Apart from the pre-event anxiety, bearish MACD signals and the Euro pair’s sustained reversal from the previous support line from June 07, now resistance around 1.1010, also keeps the EUR/USD sellers hopeful.
However, a clear break of the aforementioned three-week-long rising support line, close to 1.0900 at the latest, becomes necessary for the Euro bear’s conviction.
Following that, the 200-Exponential Moving Average (EMA) level of near 1.0860 can prod the EUR/USD bears before directing them to the key support line stretched from May 31, surrounding 1.0790 as we write.
Meanwhile, a corrective bounce in the EUR/USD price needs to cross a downward-sloping resistance line from the last Thursday, around 1.0950 at the latest, to recall the Euro bulls.
Even so, a convergence of the monthly high and the support-turned-resistance line, close to 1.1010-15, will be a tough nut to crack for the EUR/USD bulls afterward.
EUR/USD: Four-hour chart
Trend: Further downside expected