EUR/USD Price Analysis: Sellers keep control below 1.0200 support-turned-resistance
- EUR/USD holds lower ground after breaking short-term key support, now resistance.
- One-month-old horizontal area lures bears amid downbeat MACD, RSI.
- Convergence of 21-DMA, ascending trend line from mid-July guards immediate recovery.
EUR/USD remains pressured around 1.0160 during the initial Asian session on Tuesday, after breaking the 1.0200 key support the previous day.
In addition to the clear downside break of the 21-DMA and monthly ascending trend line, descending RSI (14) and receding bullish bias of the MACD also keep the EUR/USD bears hopeful.
With this, the EUR/USD pair becomes vulnerable to visiting the one-month-old horizontal support around 1.0100.
However, the 1.0000 parity mark can challenge the major currency pair’s further downside, which if ignored could quickly direct the south-run towards the yearly low surrounding 0.9950.
On the contrary, recovery remains elusive until the quote stays below the convergence of the immediate DMA and the upward sloping previous support line from mid-July, around 1.0200.
Even so, the 50-DMA and a descending trend line from May 30, close to 1.0310, appear a tough nut to crack for the EUR/USD bulls.
It’s worth noting that a three-month-old ascending support-turned-resistance line, close to 1.0360-65, appears the last defense of the pair sellers.
EUR/USD: Daily chart
Trend: Further weakness expected