Title: EUR/USD Price Analysis: Downbeat inside fortnight-old bearish channel, 0.9920 is the key
August 26, 2022 01:55 AM ET
EUR/USD is offering to refresh its intraday low around 0.9960 ahead of Friday's European session. As a result, the major currency pair is poised for a second weekly loss while remaining near the lowest levels since late 2002, which were reached earlier this week.
It is worth noting that the latest movements in the pair's price are drawing a two-week bearish channel, which suggests the pair's continued decline. The declining RSI (14) and the bullish bias of the MACD also favor sellers.
That said, the EUR/USD's latest reversal from a horizontal zone of several sharp levels since July 12 around the 1.0000 parity level appears to be directing sellers toward a three-day-old support line near 0.9920.
If the pair falls below 0.9920, the 0.9900 thresholds and the aforementioned lower channel line, which currently stands at 0.9800 at press time, could attract sellers.
Alternatively, an upside breach of the 0.9985 threshold would challenge the formation of the bearish channel. However, the bulls would then need validation of the previously noted horizontal resistance near the 1.0000 round figure.
Even if trading above 1.0000, the multiple rises seen over the last six weeks near 1.0090-95, followed by 1.0100, could pose a challenge to the EUR/USD bulls.