EUR/USD: Recovery attempts to remain as corrections

EUR/USD has declined toward 1.1300 during the Asian trading hours on Friday but managed to erase its daily losses. Technical signs suggest that recovery attempts are likely to remain limited in the short-term, FXStreet’s Eren Sengezer reports.

Sellers to take action with a drop below 1.1300

“EUR/USD has been posting lower highs on the four-hour chart since the beginning of the week, suggesting that recovery attempts remain technical in nature.”

“The Relative Strength Index (RSI) stays below 50, confirming the view that buyers remain uninterested for the time being.”

“The 200-period SMA forms the first resistance at 1.1320. In case the pair stays below that level, 1.1300 (psychological level) aligns as first support before 1.1270.”

“On the upside, the descending trend line acts as a static hurdle at 1.1340 ahead of 1.1350, (00-period SMA and the Fibonacci 61.8% retracement of the latest uptrend) and  1.1380 (Fibonacci 50% retracement).”