The currency pair EUR/USD, currently at a value of 1.08699, has experienced a second reversal from the 50-day Exponential Moving Average (EMA) within a week, indicating a continuation of its downward trend from two weeks ago. According to the perspective of @nehcap, only a small recovery is anticipated.

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• EUR/USD prints the second U-turn from 50-EMA in a week to prod fortnight-old downward trajectory.

The pair currently trades last at 1.08699.

The previous day high was 1.0941 while the previous day low was 1.086. The daily 38.2% Fib levels comes at 1.0891, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.091, expected to provide resistance.

EUR/USD portrays the typical pre-data consolidation around 1.0875 as it prints the first daily gains in three amid early Friday. In doing so, the Euro pair bounces off the 50-Exponential Moving Average (EMA) support for the second time in the last one week as traders prepare for the first readings of Eurozone inflation for June and the Federal Reserve’s (Fed) favorite inflation gauge, namely the US Core Personal Consumption Expenditure (PCE) Price Index, for May.

Also read: EUR/USD steadies below 1.0900 as Fed hawks, US data supersede ECB optimists, EU/US inflation clues eyed

Although the key EMA defends Euro buyers around 1.0850, the looming bear cross on the MACD and a one-week-old descending resistance line, around 1.0940 at the latest, challenge the major currency pair’s immediate upside.

Even if the EUR/USD pair buyers manage to cross the 1.0940 hurdle, the 23.6% Fibonacci retracement of the March-April upside and the monthly high, respectively near 1.0960 and 1.1015, could challenge the upside before giving control to the bulls.

Meanwhile, a downside break of the 50-EMA support of near 1.0850 could quickly drag the EUR/USD price to the 1.0800 support confluence comprising the 100-EMA and 50% Fibonacci retracement

Following that, the 61.8% Fibonacci retracement and a three-month-old rising support line, near 1.0735 and 1.0715 in that order, will be in the spotlight.

Trend: Limited recovery expected

Technical Levels: Supports and Resistances

EURUSD currently trading at 1.0872 at the time of writing. Pair opened at 1.0868 and is trading with a change of 0.04% % .

The pair is trading above its 20 Daily moving average @ 1.0847, below its 50 Daily moving average @ 1.0873 , above its 100 Daily moving average @ 1.0817 and above its 200 Daily moving average @ 1.0585

The previous day high was 1.0941 while the previous day low was 1.086. The daily 38.2% Fib levels comes at 1.0891, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.091, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.0839, 1.0809, 1.0758
• Pivot resistance is noted at 1.092, 1.0971, 1.1001

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