EUR/USD Price Analysis: Euro sellers need validation from 1.0750 and ECB’s Lagarde
- EUR/USD holds lower grounds after breaking key support line, approaches multi-day-old descending trend line support.
- Downbeat oscillators suggest limited room towards the south, highlighting 1.0750 as the key support.
- Euro pair’s recovery remains elusive below 1.0920 resistance confluence.
- ECB President Christine Lagarde’s speech will entertain traders amid US holiday.
EUR/USD remains on the back foot around 1.0780–75 after breaking the key support line stretched from March, now immediate resistance around 1.0780 during early Monday morning in Asia.
It’s worth noting that a downside break of an ascending trend line from mid-March joins the bearish MACD signals to keep the Euro sellers hopeful.
However, the US Labor Market Holiday joins the nearly oversold RSI (14) line to allow the EUR/USD to take a breather.
Even so, a daily closing beneath a descending support line from late June, close to 1.0750, becomes necessary for the Euro seller’s conviction. Apart from the stated support line, a speech from European Central Bank (ECB) President Christine Lagarde may also challenge the EUR/USD bears as the policymaker sounded hawkish in her latest speech.
In a case where the EUR/USD sellers keep the reins past 1.0750, the May 31 low of around 1.0635 will lure the bears.
On the flip side, a daily closing beyond the support-turned-resistance line stretched from mid-March, close to 1.0780 by the press time, becomes necessary for the intraday buyers.
Following that, the 1.0850 hurdle may gain the market’s attention ahead of a convergence of the 100-DMA and a five-week-old falling resistance line, close to 1.0920.
EUR/USD: Daily chart
Trend: Bearish