EUR/USD Price Analysis: Rebound remains elusive below monthly resistance

• EUR/USD faded bounce off three-week low, sidelined of late.
• 100-SMA, 200 SMA guard immediate upside ahead of the key short-term resistance line.
• One-month-old horizontal area restricts nearby downside ahead of yearly low.
• Sluggish RSI, key resistances challenge recovery moves, bears need conviction.

EUR/USD fails to extend the week-start rebound past 1.1600 during the initial Asian session on Tuesday.

The major currency pair’s corrective pullback from a three-week low crossed a horizontal area comprising multiple levels marked since September-end. However, 100-SMA recently challenged the EUR/USD recovery.

Given the steady RSI and a lack of momentum strength to cross the immediate key SMA, the pair’s recovery moves are likely to be reversed. Though, sellers await a clear downside break of the stated horizontal support zone near 1.1580-85 for fresh entry.

Following that, the yearly low around 1.1525, also the lowest since July 2020, will question the quote’s further weakness ahead of directing the bears towards the March 2020 peak of 1.1496.

Meanwhile, EUR/USD run-up beyond the immediate hurdle of 100-SMA, around 1.1610 by the press time, needs to cross the 200-SMA level surrounding 1.1635 to aim for the ascending trend line from early October, close to 1.1695.

In a case where the pair rise past 1.1695, also successfully pierce the 1.1700 threshold, late September highs near 1.1755 will be in focus.

EUR/USD: Four-hour chart

Trend: Bearish