- EUR/USD renews intraday high as it consolidates the biggest daily loss in a fortnight.
- Clear downside break of a two-week-old ascending trend line, absence of oversold RSI favor sellers.
- Bulls remain cautious until witnessing a clear break of 1.0365.
EUR/USD picks up bids to refresh intraday high near 1.0140 during Wednesday’s mid-Asian session. In doing so, the major currency pair consolidates the previous day’s losses, the biggest since July 11.
However, the quote’s sustained reversal from a three-week-old horizontal area, as well as a clear downside break of the previous support line stretched from July 14, keeps the EUR/USD sellers hopeful. Also suggesting the quote’s further downside is the downbeat RSI (14), not oversold.
That said, the quote’s latest rebound could aim to regain the 1.0200 threshold before challenging the support-turned-resistance line, around 1.0215 by the press time.
Even so, a horizontal area comprising multiple tops marked since early July, around 1.0270-80, could challenge the EUR/USD bulls. Also acting as the upside filter is the 200-SMA and downward sloping resistance line from June 09, respectively near 1.0325 and 1.0335.
It’s worth noting that the pair buyers remain cautious until witnessing a successful break of the horizontal resistance area established in early May, near 1.0350-65.
Meanwhile, fresh selling could direct EUR/USD bears towards the 1.0100 round figure before the 13-day-old horizontal support area could challenge the further downside around 1.0075.
In a case where the quote drops below 1.0075, the parity level and the recent low, near the 61.8% Fibonacci Expansion (FE) of March-May 2022 moves close to 0.9950, will be in focus.
EUR/USD: Four-hour chart
Trend: Further downside expected
