- The pair continued with its struggled to sustain at higher levels.
- Bears are likely to wait for a sustained break below 200-hour SMA.
The EUR/USD pair has been oscillating between two converging trend-lines over the past one week or so, forming a symmetrical triangle on hourly charts. Wednesday’s early uptick quickly ran out of the steam, rather met with some fresh supply near the triangle resistance.
The fact that the intraday pullback has now dragged the pair back below 100-hour SMA, the intraday bias might have shifted in favour of bearish traders and sets the stage for a move towards testing the triangle support, currently near the 1.1020 region, which is followed by 200-hour EMA.
With technical indicators on 4-hourly/daily charts still struggling to gain any meaningful positive traction and again drifting into the bearish territory on the 1-hourly chart, failure to defend the mentioned support levels might indicate the resumption of the prior/well-established bearish trend.
The pair might then turn vulnerable to slide back towards challenging multi-year swing lows, around the 1.0925 area, before eventually sliding farther below the 1.0900 round figure mark towards testing its next major support near the 1.0835-30 region – levels now seen since May 2017.
On the flip side, the 1.1050 region (triangle resistance) might continue to attract some fresh supply, which if cleared decisively should negate any near-term bearish bias and prompt some aggressive short-covering move and assist the pair to surpass last week’s swing high resistance near the 1.1085 level.
EUR/USD 1-hourly chart
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