EUR/USD Price Analysis: Bears attack weekly support line with eyes on 0.9860
- EUR/USD extends pullback from 200-HMA as it pokes short-term key support.
- Looming bear cross on the MACD, downbeat RSI signals further downside.
- Yearly low lures sellers, 50-HMA acts as an additional upside filter.
EUR/USD holds lower ground as sellers poke the seven-day-old support line around 0.9960 amid the initial European session on Thursday.
In doing so, the major currency pair extends the previous day’s pullback from the 200-HMA, as well as justifies the trading below the 61.8% Fibonacci retracement level of September 06-12 upside.
It’s worth noting that the impending bearish signals from the MACD and the downbeat performance of the RSI (14), not oversold, also keep EUR/USD bears hopeful of breaking the 0.9960 support.
Following that, the 0.9900 threshold may probe the downside moves before directing sellers towards the yearly low around 0.9860, also the lowest level since December 2002.
In a case where the EUR/USD bears keep reins past 0.9860, the October 2002 low near 0.9680 will be in focus.
Alternatively, the 61.8% Fibonacci retracement, also known as the golden ratio, guards the EUR/USD pair’s immediate recovery moves near 0.9990 ahead of the 200-HMA and the 50-HMA hurdles, close to the 1.0000 parity level and 1.0010 in that order.
Should the quote rises past 1.0010, the recovery moves could aim for the 1.0110 and the 1.0200 hurdles to the north.
To sum up, EUR/USD is ready to refresh the yearly low but any further downside needs a strong catalyst, which in turn highlights the US Retail Sales for August.
Also read: US Retail Sales Preview: Can consumers keep up with inflation? A breather could weigh on the dollar
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