- EUR/USD retreats from weekly resistance line, 200-HMA amid receding bullish bias of MACD.
- 61.8% Fibonacci retracement, three-week-long support line to test short-term bears.
- Monthly horizontal area adds to the upside filters.
EUR/USD remains depressed around 1.1285-80 after a negative start to the week.
The major currency pair’s pullback on Monday could be linked to the U-turn from a one-week-old descending trend line as the MACD fades bullish bias. However, 50% Fibonacci retracement (Fibo.) of November 24-30 upside restricts the quote’s immediate moves.
In addition to the 1.1280 nearby support, the 61.8% Fibo. level close to 1.1260 and an upward sloping trend line from November 24, close to 1.1245, also challenge the EUR/USD sellers.
Furthermore, a horizontal area comprising multiple lows marked since November 25, near 1.1225, will precede the 1.1200 threshold before directing the pair to the 2021 bottom of 1.1186.
Meanwhile, recovery moves will initially be challenged by the 200-HMA level of 1.1300 before the weekly resistance line, around 1.1305, plays its role.
Even if the EUR/USD prices cross the $1,305 hurdle, it needs to refresh the monthly high, currently around 1.1360, before recalling the bulls.
To sum up, EUR/USD bears keeps reins but have a bumpy road to travel during the key week.
EUR/USD: Hourly chart
Trend: Further weakness expected