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Title: EUR/USD Price Analysis: Bears attack weekly support line with eyes on 0.9860

September 15, 2022 02:25 AM ET

By: AnalysisWatch

EUR/USD is holding lower, with sellers attacking the seven-day-old support line around 0.9960 during Thursday's initial European session.

In doing so, the major currency pair extends the previous day's pullback from the 200-HMA and warrants trading below the 61.8% Fibonacci retracement level of the 06-12 September rally.

It should be noted that impending bearish signals from the MACD and the negative performance of the non-oversold RSI (14) also give EUR/USD bears hope to break the 0.9960 support.

Next, the 0.9900 threshold could probe the downside moves before directing sellers to the yearly low around 0.9860, also the lowest level since December 2002.

Should the EUR/USD bears hold the reins above 0.9860, the October 2002 low near 0.9680 will be in sight.

Alternatively, the 61.8% Fibonacci retracement, also known as the Golden Ratio, keeps the EUR/USD immediate recovery near 0.9990 ahead of the 200-HMA and 50-HMA rises, near the 1.0000 and 1.0010 parity levels in that order.

If the quote exceeds 1.0010, recovery moves could target the resistance levels of 1.0110 and 1.0200 to the north.

To summarize, EUR/USD is poised to refresh its yearly low, but any further decline requires a strong catalyst, which is highlighted by US retail sales for August.

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