#EURUSD @ 1.06927 stays defensive as sellers flirt with 200-EMA, seven-month-old support line., @nehcap view: Limited downside expected (Pivot Orderbook analysis)

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• EUR/USD stays defensive as sellers flirt with 200-EMA, seven-month-old support line.
• Looming bull cross on MACD, below-50.00 RSI conditions prod Euro bears.
• Euro buyers need validation from 100-EMA to retake control.

The pair currently trades last at 1.06927.

The previous day high was 1.0779 while the previous day low was 1.0705. The daily 38.2% Fib levels comes at 1.0733, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.0751, expected to provide resistance.

EUR/USD remains pressured around the intraday low, making rounds to 1.0700 of late, as a short-term key support confluence challenges the Euro sellers amid Monday’s sluggish Asian session.

It’s worth noting that the broad US Dollar and downbeat concerns about the Eurozone keep the EUR/USD bears hopeful as traders await the US ISM Services PMI and Factory Orders.

Also read: EUR/USD stays depressed near 1.0700 ahead of US Factory Orders, ISM Services PMI

That said, the quote’s clear U-turn from the 100-day Exponential Moving Average (EMA), currently around 1.0770, allows the EUR/USD bears to prod a convergence of the 200-day EMA and an upward-sloping trend line from late November 2022.

It’s worth noting, however, that the receding bearish bias of the MACD and the nearly oversold RSI line, placed at 14, challenge the EUR/USD bears as they jostle with the key support near 1.0690-85.

Even if the quote drops below the 1.0690-85 support confluence, the 50% Fibonacci retracement of its November-April upside and a five-month-old rising support line, respectively near 1.0660 and 1.0635, can challenge the EUR/USD pair’s further downside.

Meanwhile, EUR/USD recovery needs to provide a daily closing beyond the 100-day EMA, around 1.0770 by the press time, to convince the buyers.

Even so, the lows marked during early April and May around 1.0840-50 can act as the last defense of the EUR/USD bears.

Trend: Limited downside expected

Technical Levels: Supports and Resistances

EURUSD currently trading at 1.0697 at the time of writing. Pair opened at 1.0708 and is trading with a change of -0.10% % .

The pair is trading below its 20 Daily moving average @ 1.0813, below its 50 Daily moving average @ 1.0897 , below its 100 Daily moving average @ 1.0813 and above its 200 Daily moving average @ 1.0502

The previous day high was 1.0779 while the previous day low was 1.0705. The daily 38.2% Fib levels comes at 1.0733, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.0751, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.0682, 1.0657, 1.0609
• Pivot resistance is noted at 1.0756, 1.0804, 1.083

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