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November 17, 2022

EURUSD attack 1.0350 support with high hopes

- EURUSD seesaws around a two-week-old ascending support line.

- Repeated failures to cross 200-DMA, overbought RSI conditions favor sellers.

- Bulls need validation from the monthly top to retake control.

EURUSD flirts with a fortnight-old support line as pares the fifth consecutive weekly gain around 1.0360 during Friday’s Asian session. In doing so, the major currency pair portrays an inability to cross the 200-DMA despite multiple attempts during the week.

Not only the failure to cross the key Daily Moving Average (DMA) but the overbought RSI conditions and receding bullish bias of the MACD also keep EURUSD bears hopeful.

It’s worth noting that a clear break of the immediate support line, near 1.0350 by the press time, needs to crack the 61.8% Fibonacci retracement level of May-September downside, around 1.0300, to convince EURUSD bears.

Following that, a slump toward September’s high of 1.0198 appears imminent. However, multiple levels around 1.0100 could challenge the pair sellers afterward.

If at all the EURUSD drops below 1.0100 support, a convergence of the 100-DMA and 38.2% Fibonacci retracement level, near 1.0020, will be the last defense of the buyers.

Alternatively, recovery moves not only need to cross the 200-DMA resistance surrounding 1.0415 but should also refresh the monthly high, currently around 1.0480, to convince EURUSD bulls.

In that case, a run-up towards the late June swing high around 1.0615 can’t be ruled out.

Trend: Further weakness expected

EURUSD: Daily chart

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