EUR/USD Price Analysis: Bears keep the reins even as corrective bounce eyes to reclaim 1.0600
- EUR/USD prints mild gains to lick its wounds after the biggest monthly loss since the September.
- Repeated failures to cross 50-EMA, receding bullish bias of MACD keep sellers hopeful.
- Ascending support line from early January lures Euro sellers.
EUR/USD picks up bids to refresh intraday high around 1.0580-85 as it prints mild gains to consolidate the biggest monthly slump fall in five during early Wednesday.
In doing so, the Euro pair seems to brace for the first readings of Germany’s key inflation number for February, namely the Harmonized Index of Consumer Prices (HICP), expected 0.7% MoM versus 0.5% prior.
That said, the quote’s multiple failures to cross the 50-bar Exponential Moving Average (EMA) join the receding bullish bias of the MACD signals to favor sellers.
Even if the EUR/USD price crosses the 50-EMA hurdle surrounding 1.0620, a downward-sloping resistance line from mid-February and 200-EMA, close to 1.0640 and 1.0695 in that order, could challenge the pair buyers.
It’s worth observing that multiple levels marked since January 09 highlight the 1.0765-70 horizontal area as the last defense of the EUR/USD bears.
Meanwhile, a two-month-old ascending support line, near 1.0545, could restrict the short-term downside of the EUR/USD pair.
Following that, lows marked during the last month and January, around 1.0530 and 1.0480 in that order, could lure the EUR/USD bears.
Adding to the downside filters are the lows marked during late December 2022 around 1.0450.
EUR/USD: Four-hour chart
Trend: Further downside expected