EUR/USD Price Analysis: Snaps two-day uptrend as bears approach 1.0490 support

FXStreet · 22 Jun 2022 288 Views
  • EUR/USD takes offers to refresh intraday low after breaking weekly triangle the previous day.
  • Impending bear cross on the MACD, sustained pullback from the 200-SMA keep sellers hopeful.
  • Bulls need validation from 1.0645 to retake control, weekly support line probes immediate declines.

EUR/USD renews intraday low as bears attack 1.0500 threshold on their return after a two-day absence. That said, the major currency pair justifies the previous day’s downside break of a symmetrical triangle during Wednesday’s Asian session.

In addition to the triangle breakdown, a looming bear cross on the MACD and a clear U-turn from the 200-SMA also favor the pair sellers.

However, a one-week-old ascending support line, near 1.0490 by the press time, challenges the EUR/USD pair’s nearly downside.

Following that, the monthly low of 1.0359 and the yearly low surrounding 1.0350 could probe the pair sellers before directing them to the July 2002 peak of 1.0200.

Alternatively, recovery remains elusive until the quote stays below the 200-SMA level of 1.0590. Also acting as an upside filter is the June 10 swing high near 1.0645.

It should be noted that the aforementioned triangle’s support and the previous weekly top, respectively around 1.0555 and 1.0600, could offer additional upside filters during the EUR/USD pair’s recovery.

Overall, bears retake control of the major currency pair as traders brace for Fed Chair Jerome Powell’s testimony.

EUR/USD: Four-hour chart

Trend: Further weakness expected

Additional important levels

Today last price 1.051
Today Daily Change -0.0019
Today Daily Change % -0.18%
Today daily open 1.0529
Daily SMA20 1.0619
Daily SMA50 1.0621
Daily SMA100 1.0873
Daily SMA200 1.1157
Previous Daily High 1.0583
Previous Daily Low 1.0509
Previous Weekly High 1.0601
Previous Weekly Low 1.0359
Previous Monthly High 1.0787
Previous Monthly Low 1.035
Daily Fibonacci 38.2% 1.0555
Daily Fibonacci 61.8% 1.0537
Daily Pivot Point S1 1.0498
Daily Pivot Point S2 1.0466
Daily Pivot Point S3 1.0424
Daily Pivot Point R1 1.0571
Daily Pivot Point R2 1.0614
Daily Pivot Point R3 1.0645

Affected Trading Instrument

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