EURUSD Price Analysis: Slides to revisit the parity but further downside appears difficult
- EURUSD takes offers to renew intraday low, pares recent gains near one-week high.
- Overbought RSI, bearish MACD triggered the latest pullback.
- Immediate support line, golden cross keeps buyers hopeful.
EURUSD refreshes intraday low around the 1.0000 parity level heading into Tuesday’s European session. In doing so, the major currency pair retreats from the highest levels in eight days while printing the first daily loss in three.
The quote’s latest weakness could be linked to the overbought RSI (14) conditions and the bearish MACD signals, which in turn suggests the pair’s further downside.
However, an upward-sloping support line from late Friday, close to 0.9985 by the press time, restricts immediate declines of the EURUSD pair.
Following that, the 61.8% Fibonacci retracement of the pair’s October 26 to November 03 downside, near 0.9955, will challenge the bears.
It’s worth noting, however, that the 50-HMA pierced the 200-HMA from below and has already portrayed the “golden cross” suggesting the pair’s further upside momentum.
Hence, the EURUSD buyers remain hopeful unless the quote drops below the 200-HMA level surrounding 0.9915.
Alternatively, recovery moves should cross the weekly high near 1.0030 to recall the bulls.
Even so, the highs marked in October and September, respectively near 1.0095 and 1.0200, could challenge the EURUSD pair’s upside moves.
EURUSD: Hourly chart
Trend: Limited downside expected