EUR/USD Price Analysis: Corrective pullback battles 21-DMA, 50-DMA convergence

• EUR/USD struggles to extend recovery moves from eight-day low.
• Bearish MACD signals keep sellers hopeful inside three-week-old triangle.
• 100-DMA, horizontal area from November add to the upside filters.
• Sellers need validation from triangle’s support to aim for three-month-long horizontal support.

EUR/USD retreats towards 1.1300 during early Wednesday’s Asian session, fading the previous day’s corrective pullback from a weekly low.

The major currency pair bounce off the short-term triangle’s support the previous day to snap a three-day downtrend. However, a rebound failed to cross a convergence of the 21-DMA and 50-DMA, around 1.1330-35.

In addition to the failures to break the key moving average confluence, bearish MACD signals also keep sellers hopeful.

Though, a clear downside break of the stated triangle’s lower line, around 1.1290 by the press time, becomes necessary for the EUR/USD seller’s entry.

Following that, a downward trajectory towards a horizontal area from November, near 1.1235-30, will gain the bear’s attention.

Alternatively, recovery moves beyond 1.1335 needs to cross the triangle’s resistance line, at 1.1360 to convince buyers.

Even so, the 100-DMA and a three-month-old horizontal resistance zone, around 1.1390 and 1.1480-85 in that order, become tough nuts to crack for the EUR/USD buyers before retaking the controls.

EUR/USD: Daily chart

Trend: Further weakness expected