EURUSD holds onto its bearish bias, despite bouncing off an immediate support line. That said, a sustained trading below the 200-SMA and previous support line from late May keeps bears hopeful of breaking the nearby trend line support, around 1.0450. Following that, multiple levels surrounding 1.0400 could test the downside momentum before directing the quote towards the previous monthly low near 1.0350, also the lowest level since 2017. In a case where the pair refreshes its yearly bottom, the year 2017’s trough close to 1.0340 could act as the last defense of the bulls.
On the upside, further recovery may eye 50% Fibonacci retracement (Fibo.) of May 13-30 upside, near 1.0570. However, a convergence of the 200-SMA and the descending trend line from May 25 around 1.0600 appears a tough nut to crack for the EURUSD buyers. Even if the quote successfully crosses the 1.0600 hurdle, the June-start low around 1.0630 will be a crucial challenge for the bulls before retaking the control.
Overall, EURUSD stays on the bear’s radar even after teasing a double-bottom bullish chart pattern.