#EURUSD @ 0.99821 struggles to extend the corrective bounce off the weekly low., @nehcap view: Further weakness expected (Pivot Orderbook analysis)

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• EUR/USD struggles to extend the corrective bounce off the weekly low.
• 100-SMA, 50-SMA challenge buyers amid bearish MACD signals.
• Three-week-old horizontal area appears tough nut to crack for bears.

The pair currently trades last at 0.99821.

The previous day high was 1.0187 while the previous day low was 0.9967. The daily 38.2% Fib levels comes at 1.0051, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.0103, expected to provide resistance.

EUR/USD retreats to 0.9985 heading into Wednesday’s European session, after falling the most in two years the previous day. In doing so, the major currency pair portrays a pullback from the key moving averages amid bearish MACD signals.

That said, the latest swing low of around 0.9950 may entertain the EUR/USD sellers before directing them to the broad support area between 0.9915 and the 0.9900 threshold.

Following that, the yearly low near 0.9860 is less likely to challenge the pair bears on their way to the October 2002 low near 0.9700.

Alternatively, recovery moves will first struggle to cross the resistance area comprising the 100-SMA and the 50-SMA, around 1.000-0.9990.

Even if the quote regains the parity, the 50% Fibonacci retracement level of August-September downside, near 1.0120 and the latest swing high near 1.0200 could probe the EUR/USD bulls before giving them control.

To sum up, EUR/USD fades bounce off the latest bottom, which in turn keeps bears hopeful. However, the downside room appears limited and hence can restrict short-term moves of the pair.

Trend: Further weakness expected

Technical Levels: Supports and Resistances

EURUSD currently trading at 0.9988 at the time of writing. Pair opened at 0.9974 and is trading with a change of 0.14% % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 1.0003, 50 SMA 1.0108, 100 SMA @ 1.0334 and 200 SMA @ 1.075.

The previous day high was 1.0187 while the previous day low was 0.9967. The daily 38.2% Fib levels comes at 1.0051, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.0103, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.9898, 0.9822, 0.9677
• Pivot resistance is noted at 1.0118, 1.0263, 1.0339

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