EUR/USD Price Analysis: Stays defensive above 1.0690 resistance-turned-support
- EUR/USD seesaws near seven-month high, snaps two-day winning streak.
- One-week-old previous resistance puts a floor under the prices even as buyers appear to run out of steam.
- 50-HMA, ascending trend line from December 22 act as additional downside filters.
EUR/USD portrays exhaustion of the previous bull-run amid Monday’s holiday-inspired lackluster trading day.
Also read: EUR/USD portrays tepid start to 2023 after a volatile year, ECB vs. Fed talks, US NFP eyed
In doing so, the major currency pair fades the previous day’s upside break of the one-week-old resistance line, now support.
The EUR/USD pair’s retreat also takes clues from the bearish MACD signals and steady RSI, adding strength to the bearish bias.
However, a clear downside break of 1.0690 becomes necessary for the major currency pair to recall the bears.
Even so, 50-HMA and an upward-sloping support line from December 22, respectively near 1.0665 and 1.0630, could restrict the quote’s further downside.
In a case where the EUR/USD price remains weak past 1.0630, the late December swing low near 1.0570 could lure the pair bears.
Alternatively, buyers need validation from the immediate resistance line, as well as the monthly, respectively around 1.0708 and 1.0713, to direct prices towards May 2022 peak surrounding 1.0785.
Following that, the 1.0800 could probe the EUR/USD bulls before highlighting the late April 2022 swing high of 1.0936 as the key hurdle to the north.
Overall, EUR/USD remains on the buyer’s radar but a short-term pullback appears to brew of late.
EUR/USD: Hourly chart
Trend: Downside expected