- EUR/USD fails to late Friday’s pullback from 100-DMA.
- An ascending trend line since early-October limits the pair’s near-term downside.
EUR/USD declines to 1.1080 during Monday’s Asian session. The pair takes a U-turn from a confluence of 21 and 50-Day Simple Moving Average (DMA) while failing to extend Friday’s pullback from 100-DMA.
38.2% Fibonacci retracement level of October-December upside, at 1.1075, offers immediate support ahead of the 100-DMA level of 1.1060.
However, the pair’s additional weakness below 1.1060 will be challenged by a 50% Fibonacci retracement level of 1.1040 and a nearly three-month-old rising trend line, at 1.1020 now.
Meanwhile, a daily closing beyond 1.1084/85 confluence can trigger the pair’s fresh upside to 23.6% Fibonacci retracement level of 1.1125.
Additionally, pair’s sustained run-up past-1.1125 enables it to challenge 1.1175/80 while aiming 1.1200 round-figure.
EUR/USD daily chart
Trend: Pullback expected
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