EUR/USD Price Analysis: 10/21-DMA challenge bears around mid-0.9700s
- EUR/USD sellers attack short-term key support but snaps two-week losing streak on weekly frame.
- Convergence of the short-term key moving averages tests bears amid steady RSI, bullish MACD signals.
- Six-week-old triangle restricts short-term moves despite fundamental bearishness.
EUR/USD holds lower ground near the intraday bottom of 0.9763 as it pares the first weekly gains in three heading into Friday’s European session.
In doing so, the major currency pair sellers poke a convergence of the 10-DMA and 21-DMA, surrounding 0.9760 by the press time.
It should, however, be noted that the bullish MACD signals and steady RSI (14) suggests further grinding towards the south, not an abrupt slump.
Hence, the latest downside may witness a bounce from the stated key DMA confluence before activating another round of bearish move.
That said, a one-month-old horizontal support area near 0.9670 restricts short-term EUR/USD downside before directing the bears towards the yearly low of 0.9535.
On the contrary, recovery moves need to cross the descending trend line from September 12, around 0.9855 at the latest, to lure the EUR/USD buyers.
Following that, a run-up towards the monthly high near the parity level of 1.0000 can’t be ruled out.
However, any further upside past-1.0000 won’t hesitate to challenge the previous month’s top surrounding 1.0200.
EUR/USD: Daily chart
Trend: Limited downside expected