Eur/usd Price Analysis: Fades Bounce Off 21-dma As Sellers Approach 1.0200

Eur/usd Price Analysis: Fades Bounce Off 21-dma As Sellers Approach 1.0200

  • Trade Ideas
  • Forex
  • 2022, 05 August

Brief:

  • 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.

Suggestion:

Buy above 1.0210 for 1.0255 and 1.0270

Else

Sell below 1.0210 for 1.0190 and 1.0170

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