EUR/USD Price Analysis: Bears approach 0.9730 on breaking key support line
- EUR/USD remains depressed at two-decade low, prints three-day downtrend.
- Clear break of two-month-old support, the biggest bearish MACD signal in a month favors sellers.
- 61.8% Fibonacci Expansion (FE) lures bears ahead of the 20-year bottom.
EUR/USD bears keep the reins at the 19-year low after breaking the key support line from mid-July. That said, the major currency pair holds lower ground near 0.9830 during Thursday’s Asian session.
Not only a downside break of the previous key support, now resistance around 0.9860, but the strongest bearish signal since late August also keeps the EUR/USD sellers hopeful of refreshing the multi-year low.
In doing so, the 61.8% Fibonacci Expansion (FE) of the pair’s June-September moves, near 0.9730, will be in focus.
If at all the EUR/USD ignores the nearly oversold RSI (14) and drops below 0.9730, the south-run could aim for the year 2002 bottom surrounding 0.9610.
Alternatively, recovery remains elusive until the quote stays below the support-turned-resistance line near 0.9860.
It’s worth noting that the EUR/USD rebound past 0.9860 could enable the buyers to aim for the weekly high of 1.0050.
Even so, the 50-DMA and the descending resistance line from June, respectively near 1.0090 and 1.0140, could challenge the EUR/USD bulls afterward.
EUR/USD: Daily chart
Trend: Further downside expected