- EUR/USD bears take a breather after refreshing multi-day low.
- Clear break of the key Fibonacci retracement support hints at further downside.
- Late June 2020 low offers immediate support ahead of 78.6% Fibonacci retracement level.
- 1.1500, 200-week SMA adds to the upside filters.
EUR/USD picks up bids to refresh intraday high around 1.1215 during the initial Asian session on Friday. The major currency pair dropped to the fresh low since July 2020 before consolidating on Thursday.
The corrective pullback, however, remains below the 61.8% Fibonacci retracement (Fibo.) of March 2020 to January 2021 upside, which in turn suggests the pair’s further declines.
In addition to the stated key Fibonacci retracement level around 1.1295, a convergence of the 50% Fibo. and March 2020 high near 1.1500, as well as the 200-week SMA level of 1.1552, also challenge the EUR/USD buyers.
On the contrary, lows marked during the late June 2020, surrounding 1.1170, question the sellers before the re-entry.
Following that the 1.1100 round figure may act as a buffer during the south-run towards 78.6% Fibonacci retracement near 1.1000 round figure.
To sum up, EUR/USD bears keep reins until witnessing a weekly closing beyond 1.1552.
EUR/USD: Weekly chart
Trend: Bearish