EUR/USD Price Analysis: Defends 1.1700 as Doji around yearly low tests bears

• EUR/USD consolidates losses from the lowest levels since November 2020.
• Six-week-old descending trend line also challenges the sellers, MACD remains bearish.
• Descending trend line from early August, 20-DMA guards immediate upside.

EUR/USD licks its wounds around 2020 low, takes rounds to 1.1715 amid the early Asian session on Thursday.

The major currency pair dropped to the lowest since November 2020 the previous day before bouncing off 1.1693 to end Wednesday’s trading near 1.1700. The stated move portrayed a Doji candlestick on the daily chart that signals a trend reversal.

Given the quote’s bounce off 1.1693 as well as nearness to a downward sloping support line from early July, a corrective pullback can’t be ruled out.

Even so, a fortnight-long resistance line and 20-DMA, respectively around 1.1760 and 1.1790, restrict short-term recovery of the EUR/USD prices.

On the contrary, the pair’s downside past 1.1693 rejects the trend-reversal suggesting candlestick.

However, the aforementioned support line near 1.1685 could test the EUR/USD sellers before directing them to November 2020 lows around 1.1600.

EUR/USD: Daily chart

Trend: Corrective pullback expected