#EURUSD @ 1.04988 remains pressured after reversing from five-month high, retreats from intraday high of late., @nehcap view: Further downside expected (Pivot Orderbook analysis)

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• EUR/USD remains pressured after reversing from five-month high, retreats from intraday high of late.
• Clear downside break of one-week-old ascending trend line, bearish MACD signals favor sellers.
• Double tops near 1.0480 precede 100-SMA to challenge bears.

The pair currently trades last at 1.04988.

The previous day high was 1.0595 while the previous day low was 1.048. The daily 38.2% Fib levels comes at 1.0524, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.0551, expected to provide resistance.

EUR/USD pares intraday gains around 1.0500 during early Tuesday, fading the bounce off three-week-old horizontal support.

In doing so, the major currency pair also justifies the bearish MACD signals and the previous day’s downside break of the weekly support line, now resistance near 1.0550.

However, the double tops surrounding 1.0480 challenge the EUR/USD pair’s latest weakness. Also acting as a downside filter is the 100-SMA level surrounding 1.0385.

Should the quote stay bearish past 1.0385, the odds of witnessing a slump toward the 200-SMA level surrounding 1.0385 can’t be ruled out, which in turn holds the key for the bear’s dominance.

On the contrary, recovery moves need to stay firmer beyond the previous support line, close to 1.0550.

Even so, an ascending trend line from early November, near 1.0635 at the latest, could challenge the EUR/USD bulls.

It should be noted that the EUR/USD pair’s successful run-up beyond 1.0635 won’t hesitate to challenge the mid-2022 peak surrounding 1.0785.

Overall, EUR/USD is likely to witness a pullback unless crossing the 1.0635 hurdle. Though, the buyers could remain hopeful beyond 1.0385.

Trend: Further downside expected

Technical Levels: Supports and Resistances

EURUSD currently trading at 1.0499 at the time of writing. Pair opened at 1.0485 and is trading with a change of 0.13% % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.0339, 50 SMA 1.0037, 100 SMA @ 1.0053 and 200 SMA @ 1.0364.

The previous day high was 1.0595 while the previous day low was 1.048. The daily 38.2% Fib levels comes at 1.0524, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.0551, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.0445, 1.0406, 1.0331
• Pivot resistance is noted at 1.056, 1.0635, 1.0675

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