#EURUSD @ 0.95934 holds lower ground near the 20-year bottom, sidelined of late., @nehcap view: Further downside expected (Pivot Orderbook analysis)

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• EUR/USD holds lower ground near the 20-year bottom, sidelined of late.
• Oversold RSI tests bears around January 2001 peak.
• Bearish MACD signals, clear break of previous support from July keep sellers hopeful.
• Six-month-old descending trend channel stays in focus amid risk-off mood, energy crisis in Europe.

The pair currently trades last at 0.95934.

The previous day high was 0.9671 while the previous day low was 0.9569. The daily 38.2% Fib levels comes at 0.9608, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.9632, expected to provide resistance.

EUR/USD flirts with the 0.9600 threshold after a six-day downtrend that refreshed the 20-year low. Even so, the major currency pair remains inside a bearish chart pattern and keeps the sellers hopeful during Wednesday’s Asian session.

That said, the six-week-old downward sloping trend channel joins the sour sentiment and challenges for the eurozone, in terms of the energy crisis, to weigh on the prices. Also keeping the sellers hopeful are the bearish MACD signals.

Also read: EUR/USD braces for fresh multi-year low around 0.9600, ECB’s Lagarde, Fed’s Powell eyed

However, the oversold RSI (14) seems to challenge the EUR/USD bears around the early 2001 peak surrounding 0.9600.

Hence, the EUR/USD bears await sustained trading below 0.9600 to renew the multi-year low, currently around 0.9550. In doing so, the stated channel’s support line near 0.9465 will be in focus.

Alternatively, recovery moves remain elusive unless the price rises back beyond the previous support line from July 14, close to 0.9830 at the latest.

Even if the EUR/USD pair crosses the 0.9830 hurdle, it needs to pass through the upper line of the bearish channel, at 1.0025 to recall the buyers.

Trend: Further downside expected

Technical Levels: Supports and Resistances

EURUSD currently trading at 0.9599 at the time of writing. Pair opened at 0.9594 and is trading with a change of 0.05% % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.9924, 50 SMA 1.0056, 100 SMA @ 1.0265 and 200 SMA @ 1.0679.

The previous day high was 0.9671 while the previous day low was 0.9569. The daily 38.2% Fib levels comes at 0.9608, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.9632, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.9552, 0.951, 0.945
• Pivot resistance is noted at 0.9654, 0.9713, 0.9756

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