#EURUSD @ 0.99623 extends pullback from 200-HMA as it pokes short-term key support., @nehcap view: Further weakness expected (Pivot Orderbook analysis)

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• EUR/USD extends pullback from 200-HMA as it pokes short-term key support.
• Looming bear cross on the MACD, downbeat RSI signals further downside.
• Yearly low lures sellers, 50-HMA acts as an additional upside filter.

The pair currently trades last at 0.99623.

The previous day high was 1.0024 while the previous day low was 0.9956. The daily 38.2% Fib levels comes at 0.9998, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.9982, expected to provide resistance.

EUR/USD holds lower ground as sellers poke the seven-day-old support line around 0.9960 amid the initial European session on Thursday.

In doing so, the major currency pair extends the previous day’s pullback from the 200-HMA, as well as justifies the trading below the 61.8% Fibonacci retracement level of September 06-12 upside.

It’s worth noting that the impending bearish signals from the MACD and the downbeat performance of the RSI (14), not oversold, also keep EUR/USD bears hopeful of breaking the 0.9960 support.

Following that, the 0.9900 threshold may probe the downside moves before directing sellers towards the yearly low around 0.9860, also the lowest level since December 2002.

In a case where the EUR/USD bears keep reins past 0.9860, the October 2002 low near 0.9680 will be in focus.

Alternatively, the 61.8% Fibonacci retracement, also known as the golden ratio, guards the EUR/USD pair’s immediate recovery moves near 0.9990 ahead of the 200-HMA and the 50-HMA hurdles, close to the 1.0000 parity level and 1.0010 in that order.

Should the quote rises past 1.0010, the recovery moves could aim for the 1.0110 and the 1.0200 hurdles to the north.

To sum up, EUR/USD is ready to refresh the yearly low but any further downside needs a strong catalyst, which in turn highlights the US Retail Sales for August.

Also read: US Retail Sales Preview: Can consumers keep up with inflation? A breather could weigh on the dollar

Trend: Further weakness expected

Technical Levels: Supports and Resistances

EURUSD currently trading at 0.9965 at the time of writing. Pair opened at 0.9983 and is trading with a change of -0.18% % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.9993, 50 SMA 1.0104, 100 SMA @ 1.0328 and 200 SMA @ 1.0743.

The previous day high was 1.0024 while the previous day low was 0.9956. The daily 38.2% Fib levels comes at 0.9998, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.9982, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.9951, 0.992, 0.9883
• Pivot resistance is noted at 1.0019, 1.0055, 1.0087

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