EUR/USD Price Analysis: Steadies around mid-1.0200s but sellers stay hopeful
- EUR/USD bears take a breather around one-week low, probes three-day downtrend.
- Clear downside break of 50-SMA, one-week-old ascending trend line favors bears.
- RSI conditions, previous resistance line from early October challenge further downside.
EUR/USD struggles to extend the three-day downtrend while making rounds to the lowest levels in a week, around 1.0250, during early Tuesday.
Even so, the major currency pair remains on the bear’s radar as it defends the previous day’s downside break of the 50-bar Simple Moving Average (SMA) and an upward-sloping trend line from November 04.
In addition to the previous support line from early November and the 50-SMA, respectively around 1.0290 and 1.0310 in that order, a one-week-old descending trend line near 1.0345 also challenges the EUR/USD pair buyers.
Should the quote manage to remain firmer past 1.0345, the monthly high near 1.0480 and the late-June peak surrounding 1.0615 will gain the market’s attention.
Alternatively, the resistance-turned-support from October 04, close to 1.0195 by the press time, could restrict the EUR/USD pair’s immediate downside amid nearly oversold conditions of the Relative Strength Index (RSI) placed at 14.
If the EUR/USD bears keep the reins past 1.0195 support level, tops marked during late October around 1.0095 and the 200-SMA level surrounding 0.9970 will be in the spotlight.
To sum up, EUR/USD is likely to witness further downside but there prevails a lesser room to the south.
EUR/USD: Four-hour chart
Trend: Further downside expected