- EUR/USD consolidates the biggest daily fall since mid-June.
- Reversal from 50-DMA, downward sloping MACD line keep sellers hopeful.
- Latest September’s peak adds to the upside filters.
EUR/USD licks its wounds near 1.1560 during Monday’s Asian session, following the heaviest daily slump in 4.5 months portrayed on Friday.
The currency major’s U-turn from 50-DMA takes clues from the MACD line’s inability to reach the positive region, also tilt southwards before that, to favor the bears. Also signaling the quote’s further weakness is the downside break of three-week-old horizontal support, now resistance around 1.1590.
Hence, EUR/USD sellers are determined to smash the yearly low of 1.1524 and aim for the 1.1500 threshold.
However, the quote’s further weakness will be challenged by a downward sloping support line from August 20, around 1.1470 by the press time.
Alternatively, corrective pullback remains less worrisome until crossing the immediate support-turned-resistance line near 1.1590.
Following that, 38.2% Fibonacci retracement of September-October downside and 50-DMA, respectively around 1.1670 and 1.1690, will be tough nuts to crack for EUR/USD buyers.
Even if the pair buyers manage to cross the 1.1690 hurdle, the 1.1700 round figure and late September’s peak near 1.1760 will be challenging them.
EUR/USD: Daily chart
Trend: Further weakness expected