EUR/USD keeps bounce off monthly low, sidelined of late.
Bearish MACD, sustained trading below the key supports favor bears.
Six-week-old horizontal support holds the key to yearly low.
EUR/USD holds onto the previous day’s defensive performance around a monthly low during the sluggish start to Tuesday’s Asian session. That said, the major currency pair seesaws around 1.1730 by the press time.
Although six-week-old horizontal support triggered the pair’s corrective rebound on Monday, two-month-long support, now resistance, as well as 50-DMA, challenges recover moves amid bearish MACD signals.
Hence, any rebound becomes less important unless crossing the immediate horizontal hurdle near 1.1755, followed by the 50-DMA level surrounding 1.1795 and the 1.1800 threshold.
Even if the EUR/USD prices cross the 1.1800 mark, the mid-August top near 1.1805 and a descending resistance line from late June, around 1.1895 will question the bulls.
Alternatively, a clear downside break of the 1.1700 support will direct EUR/USD bears towards the yearly low near 1.1665.
Following that, November 2020 bottom around 1.1600 will be a crucial level to watch.
Overall, EUR/USD is in a slow grind towards the yearly low but intermediate bounces can’t be ruled out.
EUR/USD: Daily chart
Trend: Further weakness expected