After reversing from a three-week-old resistance line, the EUR/USD remains under pressure.
The bearish MACD adds to the downward momentum towards the early May descending support trend line.
Bears may be enticed below the support line by a yearly bottom, while bulls may be hesitant to enter below the horizontal line after March 11.
During Wednesday’s Asian session, EUR/USD bears take a respite at 1.1820, following the worst daily decline in over two weeks. To recall the bears, the currency major made a U-turn from a short-term declining trend line the day before.
The downward trend was aided by bearish MACD, which pointed to additional weakening approaching a falling support line that dates back to May 05, around 1.1790-85. The 1.1800 level, on the other hand, could provide a temporary pause.
If the bears continue to dominate past 1.1785, the yearly low near 1.1700, which was seen in March, could reappear on the charts.
Meanwhile, an upside break of the stated resistance line, around 1.1890, will set the stage for 1.1900 and a horizontal barrier near 1.1990-2000, which has posed a test to EUR/USD bulls since early March.
It should be highlighted, however, that a clear rise over the 1.2000 psychological magnet will signal a call for buyers to target the 1.2100 resistance level, which is close to the early June lows.
Overall, the EUR/USD is still on the decline, although interim bounces should not be overlooked.
Expect further downside in the future./n
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