EURUSD stays on the back foot ever since it reversed from a multi-month high the last week, despite the latest corrective bounce. The Euro pair’s south run also conquered the resistance-turned-support stretched from early February and gains support from the RSI’s pullback from overbought territory. Adding strength to the downside bias is the looming bear cross on the MACD. With this, the major currency pair is likely to decline further, suggesting a retest to the previous monthly high of around 1.1010. Following that, the 1.1000 psychological magnet and a two-month-old rising support line, close to 1.0940 by the press time, will test the bears. It should be noted that the 100-DMA acts as the final defense of the short-term pair buyers around 1.0885.
On the contrary, the ascending trend line from February, near 1.1140 at the latest, restricts the immediate recovery of the EURUSD pair. Following that, 1.1200 and 1.1250 may check the Euro bulls before directing them to the latest peak of around 1.1275. In a case where the buyers remain dominant past 1.1275, the 1.1300 round figure may act as a validation point for the rally targeting the previous yearly of around 1.1500. During the run-up, the 1.1400 threshold can also provide an intermediate halt.
Overall, EURUSD is likely to remain bearish as markets await the key central bank meeting decision, including the ECB and the Fed.
