EUR/USD Price Analysis: Braces for 1.1120 on US NFP day
- EUR/USD holds lower ground after two consecutive days of downtrend.
- Sustained trading below 100-SMA, bearish MACD favor sellers.
- Weekly support becomes the key for bear’s entry targeting 61.8% FE.
- 1.1385, five-week-old descending trend line add to the upside filters.
EUR/USD bears remain hopeful around 1.1300, grinding lower during early Friday morning in Asia.
The major currency pair dropped for the last two days following its failures to cross the 100-SMA. Also favoring the sellers is the MACD line that flashed bear cross.
However, a clear downside break of the one-week-long ascending support line, around 1.1255 at the latest, becomes necessary for the pair sellers to aim for the yearly low of 1.1186.
Following that, 61.8% Fibonacci Expansion (FE) of November 09-30 moves, near 1.1120, will gain the market’s attention.
Alternatively, a 100-SMA level of 1.1320 will guard the immediate recovery moves ahead of a horizontal area comprising multiple tops marked since mid-November, near 1.1375-85. Adding to the resistance is a downward sloping trend line from late October, close to 1.1430 by the press time.
Should the quote manage to rally past 1.1430, the 1.1465 level may act as an intermediate halt during the rally targeting the early November’s low near 1.1515.
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EUR/USD: Four-hour chart
Trend: Further weakness expected