EUR/USD Price Analysis: Struggles below 1.2200 inside falling channel
- EUR/USD remains depressed between 100-SMA and 200-SMA inside a three-week-old descending trend channel.
- Downbeat MACD signals also back the bears, monthly support line adds to the downside filters.
EUR/USD wobbles around 1.2170, after the previous day’s downbeat performance, amid the initial Asian session on Friday. Even so, the major currency pair remains under the bearish chart formation, falling channel, while also keeping the envelope of the key SMAs.
Given the bearish MACD signals backing the channel formation, EUR/USD can portray further losses.
However, 200-SMA and the ascending support line from May 13, respectively around 1.2150 and 1.2120, could precede the channel’s support line near 1.2095 to probe the bears.
Meanwhile, buyers are less likely to enter until the quote stays below the channel’s resistance line close to 1.2215. It’s worth noting that 100-SMA near 1.2195 guard’s the quote’s immediate upside.
In a case where the EUR/USD prices rally beyond 1.2215, the recent multi-month top near 1.2265 and the 1.2300 will lure the bulls.
EUR/USD four-hour chart
Trend: Further weakness expected
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June 10, 2021 at 04:37PM