EUR/USD snaps two-day winning streak but lacks follow-through amid sluggish session.
One-month-old symmetrical triangle restricts immediate Euro moves as US CPI week begins.
Failure to cross 200-SMA triggers pullback moves but oscillators keep EUR/USD buyers hopeful unless breaking 1.0920 support.
EUR/USD prints the first daily loss in three as it drops to 1.0995 while posting mild losses during the mid-Asian session on Monday. Even so, the Euro pair remains within a one-month-old symmetrical triangle, recently reversing from the top line and slipping back below the 200-SMA hurdle.
It’s worth noting that the previous support line from early July joins the bullish MACD signals and upbeat RSI (14) line to keep the Euro buyers hopeful as they await this week’s US inflation numbers, namely the Consumer Price Index (CPI) and Producer Price Index (PPI) for July.
Even if the quote breaks the 1.0990 immediate support, the 50% Fibonacci retracement of May-July upside, near 1.0950 and the stated triangle’s bottom line around 1.0920 will be crucial challenges for the EUR/USD bears to watch for retaking control.
Also likely to challenge the Euro sellers is the 61.8% Fibonacci retracement surrounding 1.0880 and the previous monthly low of around 1.0830.
Meanwhile, the 200-SMA level of around 1.1020 guards the immediate recovery of the EUR/USD pair ahead of the stated triangle’s top line, close to 1.1030 at the latest.
Following that, the late July swing high around 1.1050 may act as the last defense of the Euro bears before directing the quote towards the yearly of 1.1275.
EUR/USD: Four-hour chart
Trend: Limited downside expected
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : FXStreet – https://www.fxstreet.com/news/eur-usd-price-analysis-euro-fades-bullish-bias-within-monthly-triangle-focus-on-10920-and-us-inflation-202308070139
