- EUR/USD recovers from near-term key support lines.
- 100-day SMA, the three-week-old rising trend line will challenge buyers.
EUR/USD takes the bids to 1.1025 during the Asian session on Monday. The pair recently recovered from an upward sloping trend line since October 01.
As a result, buyers will target 50% Fibonacci retracement of the previous month upside, at 1.1030, as immediate resistance ahead of confronting 38.2% Fibonacci retracement level near 1.1065.
Though, 1.1080/85 area including 100-day Simple Moving Average (SMA) and a falling trend line since November 04 could keep pair’s further upside in check.
Alternatively, pair’s declines below 1.1015 support line will shift the market’s focus to 61.8% Fibonacci retracement level of 1.0994 and October 08 low near 1.0940.
If bears dominate past-1.0940, the October month’s bottom close to 1.0880 will become their favorite.
Traders should observe that the 12-bar Moving Average Convergence and Divergence (MACD) indicator keeps flashing bearish signals and raise doubts on any recovery.
EUR/USD daily chart
Trend: Pullback expected
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