EUR/USD: Two uptrend support lines converges to avoid further falls

EUR/USD has recovered from overnight lows below 1.12, trading at 1.1208 as of writing, while Friday’s 4-hour chart is showing two uptrend support lines are converging, which may prevent the pair from falling, according to FXStreet’s analyst Yohay Elam reports.

Key quotes

“Zooming out on the 4-hour chart all the way to early May shows a long-term uptrend support line that is now hitting the chart close to the current price. A more moderate uptrend dating back to late May is also providing support.”

“Momentum remains to the downside while this week’s slide from the highs sent EUR/USD below the 50 and 100 Simple Moving Averages. However, the pair is still above the 200 SMA.”

“Support awaits at the recent low around 1.1190, followed by Friday’s low of 1.1165. The next line to watch is 1.1080, which was a stepping stone on the way up in early June.”

“Resistance is 1.1250, a swing high from last week, followed by 1.1295, another such line from several days earlier. The next cap is at 1.1350, which held EUR/USD down twice during this month.”