After a three-day slide, EUR/USD bears take a respite at four-month-old support.
In the face of a bearish MACD, the monthly resistance line and the 10-day moving average guard the immediate upside.
On continued dominance, sellers may aim for an annual low, while bulls face a rough journey back.
During the early Asian session on Thursday, the EUR/USD remained parked around 1.1855-60, having dipped to the crucial horizontal support. Before the latest consolidation from the two-month low, the major currency pair had fallen for three days in a row.
EUR/USD sellers are encouraged by a bearish MACD and continuous trading below the 10-day SMA (DMA), as well as a declining trend line dating back to early June.
To hold the reins, they’ll need a decisive break of the 1.1845 support level, which includes lows from early March and late June.
Following that, numerous pauses around 1.1765-60 in late March and early April could provide an intermediate halt during the EUR/descent USD’s to the yearly low of 1.1704.
Meanwhile, the short-term resistance line, around 1.1890, will cast doubt on the corrective pullback before the 10-DMA level of 1.1905 puts the EUR/USD buyers to the test.
The recent swing high between 1.1975 and 200-DMA, which is close to the psychological magnet of 1.2000, is also acting as a crucial upside hurdle.
Overall, the EUR/USD bears appear exhausted, but the bulls face numerous obstacles before regaining control.
Bearish trend/n
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