EUR/USD Price Analysis: Stays pressured near 0.9760 support confluence

• EUR/USD retreats towards the short-term key support while paring the first weekly gain in three.
• Convergence of 50-SMA, monthly support line restrict immediate downside.
• Downbeat oscillators, pullback from 200-SMA favor bears targeting one-month-old horizontal support.

EUR/USD consolidates the first weekly gain in three as sellers approach 0.9760 support confluence during Friday’s Asian session. In doing so, the major currency pair reverses the previous day’s recovery moves amid bearish MACD signals and steady RSI (14).

That said, 50-SMA joins an upward-sloping trend line from September 28 to restrict the immediate downside of the EUR/USD pair, a break of which could quickly drag the quote towards a horizontal area comprising multiple lows marked since September 23, near 0.9680-70.

In a case where EUR/USD bears keep the reins past 0.9670, the odds of witnessing a fresh 2022 low, currently around 0.9535, can’t be ruled out. In that case, the 0.9600 and the 0.9500 round figures may act as extra downside filters.

Alternatively, EUR/USD recovery remains elusive unless the quote crosses the 0.9850-55 resistance confluence including the 200-SMA and a six-week-old resistance line.

Even so, the weekly high of around 0.9875 could act as an extra filter to the north before directing buyers towards the monthly top surrounding the parity level.

Overall, EUR/USD is likely to witness further downside but a clear break of 0.9760 is necessary to convince the pair sellers.

EUR/USD: Four-hour chart

Trend: Further weakness expected