EUR/USD Price Analysis: Clings to mild losses inside bullish channel, 1.0840 in focus
- EUR/USD holds lower ground near intraday bottom, down for the second consecutive day.
- Bearish MACD signals, failure to cross 1.0930 hurdle keeps sellers hopeful.
- Fortnight-old ascending trend line defends bulls beyond 1.0820.
- Recovery needs validation from weekly hurdle to refresh multi-month high.
EUR/USD licks its wounds near the intraday low surrounding 1.0870 as traders await the key US inflation number during early Friday in Europe. In doing so, the major currency pair drops for the second consecutive day while staying inside a two-week-old rising trend channel formation.
It’s worth noting that the quote’s multiple failures to cross the weekly horizontal resistance near 1.0930 joins bearish MACD signals and downbeat RSI (14) to keep EUR/USD bears hopeful.
However, a clear downside break of the stated bullish channel’s support, close to 1.0840 by the press time, becomes necessary to convince EUR/USD bears.
Following that, a downward trajectory towards the 1.0700-715 region comprising the multiple levels marked in the last six weeks, as well as the 200-SMA level, will be crucial to confirm the EUR/USD bear-run.
Alternatively, a successful break of the 1.0930 horizontal resistance could propel the EUR/USD prices towards the stated channel’s upper line, close to 1.0965 by the press time.
In a case where the EUR/USD buyers keep the reins past 1.0965, the 1.1000 psychological magnet should return to the chart while any further advances may aim for the mid-March 2022 peak surrounding 1.1140.
EUR/USD: Four-hour chart
Trend: Further downside expected