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EUR/USD stays depressed around five-week low as bears poke ascending trend line from November 30.
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A clear downside break of the 50-DMA, 12-week-long prior support joins bearish MACD signals in favor of EUR/USD sellers.
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Buyers have a bumpy road to return unless crossing 1.0800.
EUR/USD bears roll up their sleeves while poking the short-term key support around 1.0660 during Monday’s Asian session, following a two-week downtrend.
The major currency pair’s bearish performance could be linked to the previous week’s downside break of the 50-DMA, as well as an upward-sloping trend line from November 21, 2022, now resistance near 1.0690.
Adding strength to the downside bias are the strongest bearish MACD signals since September 2022.
Hence, the quote is all set to conquer the immediate 1.0660 support, which in turn pens a southward run towards the 50% and 61.8% Fibonacci retracement levels of the EUR/USD run-up around 1.0630 from November 2022 to February 2023 respectively. and 1.0530.
It’s worth noting, however, that the previous monthly low around 1.0480 could challenge the EUR/USD bears past 1.0530.
On the contrary, recovery moves need to cross the immediate support-turned-resistance line from November, close to 1.0690, to convince traders. Even so, the 50-DMA could probe the EUR/USD pair buyers around 1.0710.
Following that, a two-month-old ascending resistance line near 1.0800 becomes crucial for the EUR/USD buyers.
Overall, EUR/USD is likely to extend its south-run as traders await the key US inflation data.
EUR/USD: Daily chart
Trend: Further downside expected
ADDITIONAL IMPORTANT LEVELS
