Eur/usd Price Analysis: Fades Bounce Off 21-dma As Sellers Approach 1.0200
- Trade Ideas
- 2022, 05 August
- EUR/USD consolidates the biggest daily gain in a week and renews intraday low of late.
- 21-DMA challenges bears amid steady RSI and bullish MACD signals.
- Monthly horizontal resistance guards immediate upside, sellers need to conquer 1.0095 to keep reins.
EUR/USD takes offers to refresh intraday low around 1.0225 after Germany’s Industrial Production release on early Friday morning in Europe. In doing so, the major currency pair eased below a monthly horizontal resistance line ahead of the key US employment report for July.
That said, the absence of oversold RSI and bullish MACD hint at the continuation of the EUR/USD pair’s latest weakness.
However, the 21-DMA support near 1.0160 seems to challenge the short-term downside of the pair. Following that, the recent swing low near 1.0090 will act as the last defense of EUR/USD buyers before inviting bears to challenge the yearly low near 0.9950.
Meanwhile, recovery moves may initially battle the monthly horizontal resistance line surrounding 1.0290.
Following that, a downward sloping resistance line from February and a 2.5-month-old horizontal resistance area, surrounding 1.0360-65, appears a tough nut to crack for the EUR/USD bulls.
Although the EUR/USD prices are likely to step back from 1.0365, successful trading beyond the same won’t hesitate to propel the bulls towards June’s peak of 1.0615.
Buy above 1.0210 for 1.0255 and 1.0270
Sell below 1.0210 for 1.0190 and 1.0170