EUR/USD Price Analysis: Bears attack key EMA confluence near 1.1800, ECB eyed
- EUR/USD remains pressured near one-week low after three consecutive daily falls.
- Bearish MACD, sustained break of short-term support line favor sellers.
- ECB is a surprise factor but double-top challenges the bulls.
EUR/USD holds lower ground near 1.1820, following a three-day downtrend, amid the initial Asian session on Thursday.
The major currency pair’s latest fall could be linked to its U-turn from a horizontal area established since July, around 1.1910. Also backing the sellers is a downside break of a three-week-old rising trend line and bearish MACD signals.
However, a convergence of 100 and 200-EMAs around 1.1810 challenges the EUR/USD sellers ahead of the key European Central Bank (ECB) monetary policy.
Also acting as a downside filter is the August 13 high near the 1.1800 threshold.
Should the quote drop below the 1.1800 support, monthly horizontal support around 1.1700 can offer an intermediate halt during the downside towards the yearly low near 1.1665.
Meanwhile, the corrective pullback will target the support-turned-resistance line around 1.1855 but the EUR/USD bulls will remain skeptical unless crossing the 1.1910 key hurdle.
Overall, the pair bears are on the driver's seat but it all depends upon the ECB at last.
Read: European Central Bank Preview: Taper on the table, but don’t get too excited about it
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