- EUR/USD struggles to keep the bounce off the key SMAs.
- Weekly support break, downbeat Momentum line keep sellers hopeful.
- Monthly resistance line becomes crucial for bulls, 1.1230 lures short-term bears.
EUR/USD remains lackluster around 1.1312 during early Wednesday morning in Europe. In doing so, the major currency pair keeps the previous day’s downside break of a one-week-old support line amid sluggish Momentum.
However, 200-SMA and 100-SMA restrict the pair’s short-term downside around 1.1300 and 1.1295 respectively.
During the quote’s weakness past 1.1295, the 61.8% Fibonacci retracement of late November’s upside, around 1.1260, can offer an intermediate halt before directing EUR/USD sellers towards the monthly horizontal support zone near 1.1230.
On the contrary, an upside break of the previous support line near 1.1330 needs validation from the monthly descending trend line close to 1.1345 before recalling the EUR/USD bulls.
Following that, the December 2021 peak near 1.1360 and the late November’s high surrounding 1.1385 will be in focus.
Overall, EUR/USD prices are likely to keep the bearish consolidation.
EUR/USD: Four-hour chart
Trend: Further weakness expected
