EUR/USD Price Analysis: Bears take a breather ahead of 1.1300 key support
- EUR/USD holds lower grounds at weekly bottom after the biggest daily loss in two weeks.
- 50-DMA, two-month-old rising support line confine further declines.
- Clear break of horizontal area from November, MACD conditions keeps sellers hopeful.
- Buyers remain away until the quote stays below 100-DMA.
EUR/USD seesaws around 1.1320-25 during early Wednesday morning in Asia, having dropped the most in 12 days the previous day.
The major currency pair’s slump on Tuesday dragged MACD towards teasing the bears while breaking a two-month-long resistance-turned-support area of around 1.1380-85.
However, the 50-DMA level surrounding 1.1325 restricts the EUR/USD pair’s immediate declines ahead of an upward sloping support line from late November, close to 1.1300 at the latest.
Given the MACD conditions and a clear break of the key supports, EUR/USD prices are likely to conquer the 1.1300 support line, which in turn could drag the quote towards the 2021 bottom surrounding 1.1185.
During the fall, the 1.1230 and the 1.1200 threshold may offer an intermediate halt.
On the contrary, corrective pullback remains elusive below the horizontal area from November 16, near 1.1380-85.
Following that, the 50% Fibonacci retracement (Fibo.) level of October-November 2021 downside, near 1.1440, will test the EUR/USD buyers.
Even if the pair prices rise beyond 1.1440, 100-DMA and 61.8% Fibo. level, respectively around 1.1490 and 1.1500, will be tough resistances to break for the bulls.
EUR/USD: Daily chart
Trend: Further weakness expected