- EUR/USD continues to trade lower following the previous two session’s downside momentum.
- Pair finds it difficult to break above $1,800, lacks upside potential.
- MACD throws caution for aggressive buying bids.
EUR/USD makes efforts to make a recovery back to the $1.800 level on Thursday in the initial Asian trading hours. The pair moves in a very narrow trade band with no meaningful traction.
At the time of writing, EUR/USD is trading at 1.1796, up 0.05% for the day.
EUR/USD daily chart
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On the daily chart, After making the high at 1.2254 on June 1, EUR/USD remained under consistent selling pressure for the June month. The pair extended the previous month’s declines and refreshed multi-month lows near 1.1781 in the earlier day.
That said, If price breaks and sustains below the session’s low at 1.1790, it could be further corrected up to the 1.1760 horizontal support level.
The Moving Average Convergence Divergence (MACD) indicator offers potential for more downside as it remained in the oversold zone with a bearish bias.
EUR/USD bears would test the 1.1720 horizontal level followed by the low of March 31 in the vicinity of the 1.1700 area.
Alternatively, if price can sustain above the 1.1800 key psychological mark, then it could reverse back to the previous day’s high at 1.1836.
The price action would then target the 1.1860 horizontal resistance level followed by the June 20 high of 1.1908.