EUR/USD Price Analysis: Drops towards 1.1380 support confluence
- EUR/USD extends the previous day’s pullback from nine-week top.
- Doji below the key EMA directs sellers toward 50-day EMA, previous resistance line.
- Bullish MACD, key support to challenge sellers afterward.
EUR/USD takes offers to refresh intraday low around 1.1405, down 0.08% on a day during Monday’s Asian session.
The major currency pair took a U-turn after rising to the highest levels since November 11 the previous day. The downside move could be linked to Thursday’s Doji candlestick formation below the 100-day EMA, as well as the RSI retreat.
As a result, the EUR/USD pair’s latest weakness is likely to extend towards a convergence of the 50-day EMA and the resistance-turned-support line from September 03, around 1.1380. Also increasing the strength of the 1.1380 support are the multiple tops marked since November 16.
During the quote’s weakness past 1.1380, the 1.1350 and the 1.1300 round figures may entertain the sellers ahead of directing them to an upward sloping support line from November 24, around 1.1275 at the latest.
Alternatively, the 100-day EMA level of 1.1483 and the 1.1500 threshold guard the EUR/USD pair’s short-term rebound.
Following that, lows marked during early November and October, respectively near 1.1515 and 1.1525, will challenge the pair buyers.
EUR/USD: Daily chart
Trend: Further weakness expected