EUR/USD Price Analysis: Extends pullback from one-year high to 1.0970 horizontal support
- EUR/USD holds lower grounds after reversing from the highest levels in one year.
- Resistance-turned-support from early April challenges intraday sellers amid steady RSI.
- Bearish MACD signals join downside break of previously key horizontal support, one-week-old ascending trend line to favor Euro sellers.
EUR/USD remains pressured around 1.0980 as bears approach a two-week-old previous resistance while extending Friday’s U-turn from a one-year high during Monday’s Asian session.
Adding strength to the downside bias is the previous day’s EUR/USD decline below the horizontal area comprising multiple levels marked since early February, as well as a one-week-old ascending trend line.
Furthermore, bearish MACD signals and the quote’s U-turn from 1.1075 also keep Euro sellers hopeful of testing the aforementioned horizontal support area surrounding 1.0970.
However, an upward-sloping support line from mid-March and the 100-SMA, respectively near 1.0910 and 1.0895, can challenge the EUR/USD bears before offering them a free hand to prod the monthly low of 1.0788.
It’s worth noting that the late March high of around 1.0930 also acts as short-term key support to watch for the EUR/USD pair sellers.
Meanwhile, the Euro pair’s recovery remains elusive below the aforementioned short-term support-turned-resistance line and a multi-day-old horizontal area, close to 1.1030-40 by the press time.
Even if the EUR/USD buyers manage to cross the 1.1040 hurdle, the latest peak of 1.1075 appears a tough nut to crack for them ahead of challenging the late March 2022 high of near 1.1185.
EUR/USD: Four-hour chart
Trend: Further downside expected