- EUR/USD bears take a breather after posting the biggest daily loss in two weeks.
- Convergence of 21-DMA, 50-DMA restricts short-term downside amid receding bullish bias of MACD.
- Bulls remain away until the quote stays below 1.1485.
EUR/USD remains on the back foot during the early Asian session on Monday, despite recent inaction around 1.1340-45.
That said, the major currency pair dropped the most in two weeks the previous day while extending Thursday’s pullback from 1.1485-90 horizontal area established since November 11, 2021.
However, a joint of the 21-DMA and 50-DMA restricts the immediate downside of the stated currency pair.
Given the downbeat MACD conditions and the quote’s inability to cross important resistance zone, EUR/USD prices are likely to break the 1.1330 support confluence.
Following that, the 1.1300 threshold and the 1.1230 support levels may entertain EUR/USD bears before an 11-week-old horizontal area near 1.1180 challenges the further downside.
Alternatively, a clear upside past 1.1485 isn’t a green card to the EUR/USD bulls as another resistance zone comprising October 2021 lows near 1.1530 will challenge the pair’s upside momentum.
Should the pair prices rally beyond 1.1530, the odds of witnessing a rally towards an October high near 1.1695 can’t be ruled out.
EUR/USD: Daily chart
Trend: Further weakness expected