EUR/USD Price Analysis: Euro sellers approach 1.0860 support, focus on impending bear cross, Fed Minutes
- EUR/USD holds lower ground near intraday bottom, keeps previous day’s bearish bias.
- Looming bear cross, downbeat MACD signals keep Euro sellers hopeful.
- Five-week-old rising support line, 200-SMA lures EUR/USD bears ahead of Eurozone PPI, FOMC Minutes.
EUR/USD stays pressured around the weekly low even as it makes rounds to 1.0880 amid early Wednesday morning in Europe.
The Euro pair’s latest inaction could be linked to the cautious mood ahead of the Eurozone Producer Price Index (PPI) for May and the Federal Open Market Committee (FOMC) Minutes for the June meeting. However, the sustained trading below the 50-SMA and 100-SMA joins the bearish MACD signals to keep the sellers hopeful.
It should be noted that the 50-SMA pierces the 100-SMA from above and is closer to portraying the bear cross, which in turn will suggest further downside of the major currency pair.
With this, the EUR/USD bears appear well-set to visit an upward-sloping support line from May 31, close to 1.0860. However, the pair’s further downside seems limited unless breaking the 200-SMA support of 1.0820.
Meanwhile, a convergence of the 50-SMA and 100-SMA, around 1.0910 at the latest, restricts the short-term upside of the EUR/USD pair.
Following that, a fortnight-old downward-sloping resistance line, close to 1.0920 by the press time, will be crucial to watch for the Euro buyers before retaking control.
EUR/USD: Four-hour chart
Trend: Further downside expected