- EUR/USD stabilizes after the heaviest drop in five weeks.
- Key trend line breakdown, bearish MACD favor sellers.
- 50-day, 100-day SMA join mid-May bottom to lure the bearish bets.
EUR/USD edges lower around 1.2130 during the early Friday morning in Asia. The currency major pair dropped the most since April’s end the previous day, not to forget breaking an ascending support line from March 31, amid broad US dollar strength.
The stated support break, now resistance, joins the strongest bearish MACD signals in two months to keep sellers hopeful ahead of the key US jobs report.
Although the late April tops and early May levels offer immediate support near 1.2130-25, the EUR/USD bears are inclined to target a confluence of 50-day and 100-day SMA, as well as May 13 low, around 1.2050-45.
It’s worth noting that the 1.2100 threshold can act as an extra filter to the south during the pair’s drop towards the multi-day low.
Alternatively, a corrective pullback will be immediately challenged by the 1.2170-80 area ahead of the stated trend line, around 1.2230.
During the quote’s run-up beyond 1.2230, the monthly peak of 1.2266 and the 1.2300 round figure may test the EUR/USD bulls before directing them to the yearly top near 1.2350.
EUR/USD daily chart
Trend: Bearish
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