EUR/USD Price Analysis: Sellers need validation from 13-day-old support around 1.0700

• EUR/USD extends previous day’s pullback from one-month high.
• Clear break of 50-day EMA, RSI retreat favor sellers.
• 38.2% Fibonacci retracement holds the key to further advances.

EUR/USD remains pressured around the intraday low, stretching Tuesday’s pullback from the monthly peak during Wednesday’s Asian session. That said, the major currency pair seesaws around 1.0730-25 by the press time.

It’s worth noting that the quote’s U-turn from 38.2% Fibonacci retracement (Fibo.) of February-May downside gains support from RSI (14) retreat to favor sellers. Also keeping the bears hopeful is the clear downside break of the 50-day EMA.

However, an upward sloping support line from mid-May, around 1.0700, challenges the EUR/USD pair’s further declines.

Following that, 23.6% Fibo. and early May’s high near 1.0640 can lure the pair sellers before directing them to the sub-1.0500 zone.

Alternatively, the 50-day EMA and the latest swing high, respectively near 1.0740 and 1.0785, limit the EUR/USD pair’s short-term recovery. Also acting as an upside filter is March’s low surrounding 1.0810.

Should the quote rise past 1.0810, the odds of its run-up towards late April top close to 1.0940 can’t be ruled out.

EUR/USD: Daily chart

Trend: Further weakness expected