Stays on the defensive mode above 1.1300

  • EUR/USD pares the week-start losses, picks up bids of late.
  • Successful bounce off seven-week-old support line, 200- SMA keep buyers hopeful.
  • Steady oscillators also favor rebond towards weekly resistance line.

EUR/USD consolidates Monday’s losses above 1.1300, around 1.1330 during Tuesday’s Asian session.

In doing so, the major currency pair keeps the corrective pullback from an upward sloping support line from November 24 and the 200-SMA.

Given the steady RSI and firmer Momentum lines, the latest rebound is likely extending towards a one-week-old resistance line near 1.1360.

However, any further downside will be challenged by the December-end peak near 1.1385 and the 1.1400 threshold.

Alternatively, the stated 200-SMA and short-term support line, respectively around 1.1300 and 1.1280, restricts the quote’s immediate downside.

Also acting as the key support is the 61.8% Fibonacci retracement level of late November to December advances, close to 1.1260.

It’s worth noting that the repeated failures on the way to 1.1400 keep EUR/USD bears hopeful despite the latest corrective bounce.

EUR/USD: Four-hour chart

Trend: Further recovery expected


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