At a rate of 1.09145, the EURUSD has encountered selling pressure and reversed its temporary increase from Tuesday, continuing a four-day decline. Nehcap anticipates that the decline will not be significant.

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• EUR/USD takes offers to reverse late Tuesday’s corrective bounce amid four-day downtrend.

The pair currently trades last at 1.09145.

The previous day high was 1.0946 while the previous day low was 1.0893. The daily 38.2% Fib levels comes at 1.0913, expected to provide support. Similarly, the daily 61.8% fib level is at 1.0926, expected to provide resistance.

EUR/USD stays on the bear’s radar for the fourth consecutive day as it reverses the late Tuesday’s corrective bounce off the weekly low amid very early Wednesday morning in Europe. In doing so, the Euro pair refreshes the intraday low around 1.0910 while staying within a bullish chart formation called a “bull flag”.

Given the sluggish RSI (14) line, the EUR/USD bears may find it difficult to keep the reins, which in turn highlights the stated flag’s bottom line and a two-week-old rising support trend line, respectively near 1.0885 and 1.0875, as short-term key supports.

Even if the Euro bears conquer the 1.0875 support and defy the bullish chart formation, the 200-Hour Moving Average (HMA) of near 1.0845 will act as the final defense of the EUR/USD bulls.

Meanwhile, EUR/USD pair’s recovery needs validation from the stated flag’s top line, around 1.0935-40 by the press time.

Following that, the monthly high surrounding 1.0970 and the 1.1000 round figure may prod the pair buyers before directing them toward the yearly high of around 1.1100 and the theoretical target of the bullish flag, close to 1.1230.

Apart from the bullish chart formation and the below 50 levels of the RSI (14) line, the cautious mood ahead of speeches from multiple European Central Bank (ECB) and the Federal Reserve (Fed) officials also prods the EUR/USD bears of late. Among them, Fed Chair Jerome Powell’s bi-annual Testimony gains major attention.

Also read: EUR/USD: ECB hawks defend Euro above 1.0900 despite Fed rate hike signals, Powell’s Testimony eyed

Trend: Limited downside expected

Technical Levels: Supports and Resistances

EURUSD currently trading at 1.0913 at the time of writing. Pair opened at 1.0918 and is trading with a change of -0.05% % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.0777, 50 SMA 1.088, 100 SMA @ 1.0808 and 200 SMA @ 1.0551.

The previous day high was 1.0946 while the previous day low was 1.0893. The daily 38.2% Fib levels comes at 1.0913, expected to provide support. Similarly, the daily 61.8% fib level is at 1.0926, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.0892, 1.0865, 1.0838
• Pivot resistance is noted at 1.0945, 1.0972, 1.0999

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