The EURUSD currency pair, currently trading at 1.08905, is experiencing selling pressure that is causing it to revisit its lowest level of the day. It is also testing a support line that has been rising for the past three weeks. The analyst Nehcap predicts that the currency pair will continue to decline in the near future.

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• EUR/USD takes offers to refresh intraday low, pokes three-week-old rising support line.

The pair currently trades last at 1.08905.

The previous day high was 1.0963 while the previous day low was 1.0897. The daily 38.2% Fib levels comes at 1.0922, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.0938, expected to provide resistance.

EUR/USD extends the previous day’s downturn towards piercing a three-week-old rising support line, around 1.0895 by the press time, as markets prepare for German inflation and Federal Reserve (Fed) Chairman Jerome Powell’s speech on early Thursday.

Also read: EUR/USD floats above 1.0900 as ECB hawks jostle with upbeat US Banking Stress Test, Fed Powell’s speech

Apart from the pre-event anxiety, bearish MACD signals and the Euro pair’s sustained reversal from the previous support line from June 07, now resistance around 1.1010, also keeps the EUR/USD sellers hopeful.

However, a clear break of the aforementioned three-week-long rising support line, close to 1.0900 at the latest, becomes necessary for the Euro bear’s conviction.

Following that, the 200-Exponential Moving Average (EMA) level of near 1.0860 can prod the EUR/USD bears before directing them to the key support line stretched from May 31, surrounding 1.0790 as we write.

Meanwhile, a corrective bounce in the EUR/USD price needs to cross a downward-sloping resistance line from the last Thursday, around 1.0950 at the latest, to recall the Euro bulls.

Even so, a convergence of the monthly high and the support-turned-resistance line, close to 1.1010-15, will be a tough nut to crack for the EUR/USD bulls afterward.

Trend: Further downside expected

Technical Levels: Supports and Resistances

EURUSD currently trading at 1.0894 at the time of writing. Pair opened at 1.0913 and is trading with a change of -0.17% % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.0841, 50 SMA 1.0875, 100 SMA @ 1.0816 and 200 SMA @ 1.058.

The previous day high was 1.0963 while the previous day low was 1.0897. The daily 38.2% Fib levels comes at 1.0922, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.0938, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.0886, 1.0858, 1.082
• Pivot resistance is noted at 1.0952, 1.099, 1.1017

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