EUR/USD Price Analysis: 10-DMA tests corrective pullback above 1.1800

EUR/USD holds lower ground near 1.1840, close to the weekly bottom, during the initial Asian session on Thursday. The major currency pair dropped the  |  05/08/2021 00:13
  • EUR/USD licks its wounds around one-week low after two-day downtrend.
  • Momentum retreat, failures to cross four-month-old horizontal hurdle favor sellers.
  • July’s bottom lures the bears until the quote stays below 50-DMA.

EUR/USD holds lower ground near 1.1840, close to the weekly bottom, during the initial Asian session on Thursday. The major currency pair dropped the most in three weeks the previous day.

That said, the quote’s latest moves struggle with the 10-DMA amid a downward sloping Momentum line, which in turn favors the continuation of the bearish impulse.

Hence, the pair’s further weakness towards 1.1800 becomes imminent but any further weakness will be challenged by 1.1780 and a horizontal area comprising multiple levels since late March, near 1.1760-50.

In a case where the EUR/USD prices remain weak past 1.1750, the yearly low of 1.1700 will be in focus.

On the flip side, a clear break of 10-DMA level near 1.1845 needs to cross the June 18–21 bottom surrounding 1.1850, as well as mid-July tops close to 1.1880 before directing the buyers towards a four-month-long horizontal resistance zone close to 1.1910-15.

Even so, 50-DMA and late June’s high, respectively near 1.1940 and 1.1975, not to forget the 1.2000 psychological magnet, could challenge the EUR/USD bulls.

EUR/USD: Daily chart

Trend: Further weakness expected

 

Share

Popular News

Show More Popular News

Market Insight's Views

Market Insight analyses will provide both fundamental and technical comprehensions on FX
and other asset classes for Market Insight viewers

RISK WARNING

The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.

If such information is acted upon by you then this should be solely at your discretion and GKFX will not be held accountable in any way.

  • ForexF
  • IndicesI
  • CommoditiesC
        Back

        Login to Market Insight Account

        Your Market Insight account gives you access to the tools that we offer our customers including our
        Technical Studies & Sentiment for your accounts.

        Forgot Password?

        Don't you have a Market Insight account? With a few easy steps you can easily register to Market Insight

        Create a Market Insight's Account

        Your Market Insight account gives you access to the tools that we offer our customers including our Technical Studies & Sentiment for your accounts.

        register_ty

        Thank you!

        Welcome to Market Insight family!

        You have succesfully completed the registration.
        We will send you an e-mail to give you some
        instructions and our Terms and Conditions!
        Our account representatives will be contacting you as
        soon as possible. If you have any further questions
        please do not hesitate to mail us via info@marketinsight.com