EURUSD fades bounce off key support line as full markets return

EURUSD lacks clear directions early Thursday after rising in the last three consecutive days. In doing so, the Euro pair fades Friday’s rebound from an upward-sloping support line stretched from October as sentiment dwindles amid the return of full markets after the previous day’s Juneteenth holiday in the US. Apart from the struggle to defend the recovery, bearish MACD signals and a downbeat RSI line also challenge the buyers. Apart from that, a fortnight-old descending resistance line surrounding 1.0765 and a convergence of the 100-day and 200-day Exponential Moving Average (EMA), near the 1.0800 threshold, stand tall to restrict the quote’s upside moves. In a case where the major currency pair remains firmer past 1.0800, the odds of witnessing a quick run-up toward the monthly high of 1.0916 can’t be ruled out.

Alternatively, EURUSD sellers aim for the 61.8% Fibonacci retracement of the October-December 2023 run-up, close to 1.0710, as an immediate target ahead of revisiting the aforementioned multi-month-old support trend line surrounding 1.0670. It’s worth noting that the monthly low of around 1.0665 acts as an additional downside filter for the Euro before directing it to the yearly low of 1.0600 marked in April. Additionally, the 78.6% Fibonacci ratio of 1.0595 acts as the final defense of the buyers ahead of allowing the bears to challenge the late 2023 bottom of near 1.0450.

Overall, EURUSD remains on the bear’s radar unless crossing 1.0800. However, downside room for the pair appears limited.