EUR/USD Price Analysis: Corrective pullback remains elusive below 1.0530
- EUR/USD consolidates recent losses around a five-year low.
- Descending triangle, 50-HMA restricts short-term recovery moves amid sluggish oscillators.
- Bears keep their eyes on 61.8% Fibonacci Expansion level with multiple likely bounces around 1.0490.
EUR/USD stays defensive around 1.0510, paring recent losses around the lowest levels since 2017 during the sluggish Asian session on Tuesday.
In doing so, the major currency pair stays inside a one-week-old descending triangle formation, recently bouncing off the support line.
That being said, the 50-HMA adds strength to the upside hurdle surrounding 1.0530 that challenges the pair’s rebound.
Even if the quote rises past 1.0530, late April’s swing high near 1.0595 will act as an extra filter to the north before inviting the EUR/USD bulls.
Alternatively, multiple levels restrict the pair’s immediate downside around 1.0490, comprising the aforementioned triangle’s support line.
A break of 1.0490 will need validation from the latest bottom surrounding 1.0470, which in turn holds the gate for a slump towards the 61.8% Fibonacci Expansion (FE) of April 26-29 moves, near 1.0425.
Overall, EUR/USD remains on the back foot but the short-term recovery can’t be ruled out if it manages to break the 1.0530 hurdle, considering the sluggish MACD and RSI during the latest fall.
EUR/USD: Hourly chart
Trend: Bearish