#EURUSD @ 1.00039 -imp levels: struggles to defend the previous day’s recovery inside ascending trend channel.

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• EUR/USD struggles to defend the previous day’s recovery inside ascending trend channel.
• Convergence of previous resistance line, channel’s bottom appears a tough nut to crack for bears.
• RSI retreat adds strength to pullback moves, 200-SMA acts as additional upside filter.

The pair currently trades last at 1.00039.

The previous day high was 1.0029 while the previous day low was 0.9914. The daily 38.2% Fib levels comes at 0.9985, expected to provide support. Similarly, the daily 61.8% fib level is at 0.9958, expected to provide support.

EUR/USD eases back to the 1.0000 parity level, after bouncing off a one-week high, as traders struggle for clear directions during Tuesday’s Asian session.

In doing so, the major currency pair retreats from the resistance line of a one-week-old ascending trend channel. The pullback moves also take clues from the RSI (14) retreat and hence hint at the further weakness.

However, a confluence of the resistance-turned-support line from August 11 and the lower line of the stated channel, around 0.9890, seems a strong support for the EUR/USD bears to crack to retake control.

Following that, lows marked during September and October 2002, respectively near 0.9685 and 0.9610, could lure the pair sellers.

Meanwhile, recovery moves may initially aim for the upper line of the bullish channel, close to 1.0030 at the latest. Following that, the three-week-old horizontal resistance near 1.0120 and the 200-SMA level of 1.0150 could test the upside momentum.

It’s worth noting, though, that the EUR/USD advances past 1.0150 could enable buyers to aim for the monthly peak surrounding 1.0365.

Trend: Pullback expected

Technical Levels: Supports and Resistances

EURUSD currently trading at 1.0007 at the time of writing. Pair opened at 0.9996 and is trading with a change of 0.11% % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 1.0124, 50 SMA 1.0216, 100 SMA @ 1.0422 and 200 SMA @ 1.0821.

The previous day high was 1.0029 while the previous day low was 0.9914. The daily 38.2% Fib levels comes at 0.9985, expected to provide support. Similarly, the daily 61.8% fib level is at 0.9958, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.993, 0.9865, 0.9815
• Pivot resistance is noted at 1.0046, 1.0095, 1.0161

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