EUR/USD Price Analysis: Euro bears approach 1.0960 key support ahead of US ISM PMI, JOLTS Job Opening

• EUR/USD extends week-start fall to refresh intraday low, approaching short-term key support line.
• Sluggish MACD signals, below 50.0 RSI (14) line prod Euro sellers.
• Bulls need validation from 21-SMA, fortnight-old descending resistance line.
• US ISM Manufacturing PMI for July, JOLTS Job Opening for June eyed for immediate directions, risk catalysts are important too.

EUR/USD takes offers to refresh intraday high around 1.0980 amid very early Tuesday morning in Europe.

The Euro pair’s latest weakness could be linked to the failure to cross the 21-SMA. With this, the major currency pair drops for the second consecutive day while reversing Friday’s corrective bounce off a three-week low.

However, the sluggish MACD signals and below 50.0 levels of the RSI (14) suggests bottom-picking of the EUR/USD pair, which in turn highlights an upward-sloping support line from May 31, around 1.0960 by the press time, as the key challenge to the Euro bears.

Following that, the 50% Fibonacci retracement of the pair’s May-July upside, close to 1.0955, and the latest swing low of around 1.0945 may act as intermediate halts during the EUR/USD fall targeting the previous monthly low of around 1.0830.

On the flip side, a clear break of the 21-SMA level of 1.1025 needs validation from the double tops marked around 1.1050 to challenge a two-week-old descending resistance line surrounding 1.1105.

In a case where the EUR/USD pair remains firmer past 1.1105, the odds of witnessing a run-up toward the previous monthly high of around 1.1275 can’t be ruled out.

Fundamentally, the sour sentiment joins receding hawkish bias about the European Central Bank (ECB), backed by the recent Eurozone data, to weigh on the EUR/USD pair ahead of the key US ISM Manufacturing PMI for July and JOLTS Job Opening for June.

Also read: EUR/USD steadies near 1.1000 as firmer Eurozone inflation, GDP prods Euro bears, US ISM PMI eyed

EUR/USD: Four-hour chart

Trend: Limited downside expected