EUR/USD Price Analysis: Extends pullback from 200-SMA towards 1.0700

• EUR/USD remains pressured after reversing from one-week high.
• Three-day-old ascending trend line probes bears ahead of the key monthly support line.
• Gravestone Doji bearish candlestick, failure to cross 200-SMA keeps Euro bears hopeful.

EUR/USD bears rush towards retaking control as the Euro pair stays depressed around 1.0730 during Friday’s Asian session, following a U-turn from the weekly top.

That said, the major currency pair reversed from the one-week high the previous day as the 200-Simple Moving Average (SMA) challenged buyers.

Not only the failures to cross the 200-SMA, around 1.0770 by the press time, but the bearish candlestick at the latest swing high, namely the “Gravestone Doji”, also teases the EUR/USD bears.

However, an upward-sloping support line from Tuesday probes EUR/USD bears near 1.0730 ahead of the one-month-old ascending trend line support, close to 1.0690 at the latest.

It should be noted that the 61.8% Fibonacci retracement level of the pair’s January-February upside adds strength to the 1.0690 support.

In a case where the EUR/USD remains weak past 1.0690, the odds of witnessing a southward trajectory towards the monthly low of 1.0670 and then to January’s bottom surrounding 1.0485 can’t be ruled.

On the flip side, the pair’s successful trading beyond the 200-SMA level of 1.0770 isn’t an open welcome to the EUR/USD bulls as the weekly top of 1.0790 and the 1.0800 could challenge the further upside.

Should the EUR/USD price rally beyond 1.0800, the previous Friday’s swing high near 1.0940 will be crucial to watch for clear directions.

EUR/USD: Four-hour chart

Trend: Further downside expected