EURUSD Price Analysis: Looks set to test 0.9680 support level
- EURUSD stays pressured around two-week low, braces for the first weekly loss in three.
- Clear break of five-week-old previous support line, bearish MACD signals favor sellers.
- A 1.5-month-long horizontal support can test bears before the yearly low.
- 21-DMA acts as an extra filter to the north, 61.8% FE can lure bears past 0.9535.
EURUSD remains on the back foot around the lowest levels in two weeks, pressured near 0.9745 during Friday’s Asian session.
In doing so, the major currency pair justifies the previous day’s upside break of an upward-sloping support line from late September, now resistance around 0.9775. Also increasing the strength of the bearish bias are the downbeat MACD signals and the RSI (14) conditions.
As a result, the EURUSD bears are all set to aim for the six-week-old horizontal support surrounding 0.9680 before targeting the yearly low near 0.9535.
If the pair bears keep the reins past 0.9535, the 61.8% Fibonacci Expansion (FE) of the quote’s moves between late June and October 26, around 0.9420, will gain the market’s attention.
Alternatively, an upside clearance of the support-turned-resistance line of 0.9775 is an open invitation to the EURUSD bulls as the 21-DMA level of 0.9828 guards the quote’s short-term recovery.
Even if the quote stays successfully beyond 0.9830, the EURUSD pair’s further upside remains doubtful as the 100-DMA and October’s peak, respectively around 1.0050 and 1.0095, could test the bulls before giving them control.
EURUSD: Daily chart
Trend: Bearish