EUR/USD Price Analysis: Fades recovery below 0.9800 resistance confluence
- EUR/USD consolidates the biggest daily gains in six months, retreats after crossing the 0.9600 previous key hurdle.
- Convergence of 50-SMA, support-turned-resistance from late August probes buyers.
- Firmer RSI, bullish MACD signals join clear upside break of 0.9600 to test sellers.
- 21-SMA, weekly support line adds to the downside filters.
EUR/USD takes offers to refresh intraday low around 0.9700 while paring the previous day’s bounce off a 20-year low during Thursday’s Asian session.
In doing so, the Aussie pair also trims the biggest daily jump since March while reversing the breakout of the 0.9600 hurdle comprising the 21-SMA and a one-week-old descending trend line.
It should, however, be noted that the bullish MACD signals and the firmer RSI (14) keep the buyers hopeful. That said, the 21-SMA, currently around 0.9640 offers immediate support ahead of the resistance-turned-support line near the 0.9600 threshold.
Even if the EUR/USD prices drop below the 0.9600 support, a downward sloping trend line from Monday, around 0.9530 by the press time, could challenge the pair’s further declines.
On the flip side, the latest swing high near 0.9750 holds the key to EUR/USD buyers’ welcome.
Following that, a convergence of the downward sloping trend line from August 23 and the 50-SMA, around 0.9800 at the latest, could challenge the pair bulls.
In a case where the quote rises past 0.9800, the odds of witnessing the run-up towards the parity can’t be ruled out.
EUR/USD: Four-hour chart
Trend: Further recovery expected