EUR/USD Price Analysis: Bears take a breather inside weekly falling channel, 1.0550 in focus

• EUR/USD recovers from five-year high but stays inside bearish chart pattern.
• 50-HMA, bearish MACD signals add strength to the downside bias.
• Oversold RSI on D1 underpins corrective pullback, multiple hurdle test the buyers.

EUR/USD holds onto the initial Asian session recovery from the lowest levels since 2017 around 1.0520 during the very early European morning on Friday.

Although recently bullish MACD signals on the hourly chart favor the pair buyers, the resistance line of a one-week-old descending trend channel and the 50-HMA challenges the further upside around 1.0540-45.

EUR/USD: Hourly chart

Trend: Bearish

Even if the quote rises past 1.0545, 161.8% Fibonacci retracement of the previous month’s up-moves, near 1.0585, will challenge the EUR/USD bulls.

Also acting as the upside filter is the previous support line from November 2021, close to 1.0600 by the press time.

Alternatively, the latest bottom surrounding 1.0470 and the bearish channel’s lower line, near 1.0400, will test the short-term bears.

In a case where the EUR/USD prices drop further below 1.0400, the year 2017 trough surrounding 1.0340 will be in focus.

EUR/USD: Daily chart

Trend: Corrective pullback can’t be ruled out

Also read: EUR/USD rebounds from five-year low towards 1.0550 ahead of Eurozone GDP, US PCE inflation data