October 21, 2022 01:36 AM ET
By: AnalysisWatch
EUR/USD is holding near the intraday low of 0.9763 while losing the first weekly gains in three years ahead of European trading on Friday.
In the process, sellers of the major currency pair are encountering a convergence of the 10-DMA and 21-DMA, which stood at 0.9760 at press time.
However, it should be noted that the bullish MACD signals and the stable RSI (14) indicate a further slide towards the south and not an abrupt collapse.
Therefore, the recent downtrend could see a recovery from the aforementioned key DMA confluence before triggering another round of downside.
Apart from that, a one-month-old horizontal support zone at 0.9670 limits EUR/USD's short-term downtrend before directing bears to the yearly low of 0.9535.
To attract EUR/USD buyers, the recovery move needs to break the descending trend line from September 12 at 0.9855 at the latest.
After that, a rise towards the monthly high near the parity level of 1.0000 cannot be ruled out.
However, further upward movement beyond 1.0000 will not hesitate to challenge the previous month's high at 1.0200.
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