The EURUSD pair is currently stable at a rate of 1.08475, following a significant decline over the past month after crossing below the 100-day moving average. According to Nehcap’s perspective, a rebound is anticipated as a correction to the downward movement.

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• EUR/USD remains sidelined after falling the most in a month by reversing from 100-DMA.

The pair currently trades last at 1.08475.

The previous day high was 1.0914 while the previous day low was 1.0867. The daily 38.2% Fib levels comes at 1.0896, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.0885, expected to provide resistance.

EUR/USD holds lower grounds near 1.0845-50 despite portraying the pre-data inaction amid early Wednesday.

Euro dropped the most since late July while reversing from the 100-DMA the previous day. However, the cautious mood ahead of the preliminary readings of the August month Purchasing Managers Indexes (PMIs) for the Eurozone, Germany and the US restricts the major currency pair’s immediate downside.

Also read: EUR/USD hits monthly high above 1.0900, makes a U-Turn on rising US yields, ahead of Powell’s speech

Technically, a convergence of the ascending trend line from late November 2022 and a horizontal area comprising lows marked in the last two months, around 1.0835-50, restricts the immediate downside of the Euro pair. Adding strength to the stated support zone is the nearly oversold RSI (14) line, suggesting bottom-picking.

However, the 100-DMA level of 1.0930 can restrict the Euro pair’s corrective bounce, especially amid the bearish MACD signals.

Also challenging the EUR/USD buyers is a downward-sloping resistance line from July 18, close to 1.0955 by the press time.

Following that, the tops marked in February and April, respectively near 1.1035 and 1.095, will be in the spotlight.

Alternatively, a downside break of 1.0835 will need validation from the 200-DMA support of around 1.0800 to convince the EUR/USD bears in challenging May’s bottom surrounding 1.0635.

Trend: Corrective bounce expected

Technical Levels: Supports and Resistances

EURUSD currently trading at 1.0848 at the time of writing. Pair opened at 1.0896 and is trading with a change of -0.44% % .

The pair is trading below its 20 Daily moving average @ 1.096, below its 50 Daily moving average @ 1.098 , below its 100 Daily moving average @ 1.0931 and above its 200 Daily moving average @ 1.0794

The previous day high was 1.0914 while the previous day low was 1.0867. The daily 38.2% Fib levels comes at 1.0896, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.0885, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.087, 1.0845, 1.0824
• Pivot resistance is noted at 1.0917, 1.0939, 1.0964

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