EURUSD Price Analysis: Pares the biggest daily gains since 2015 below a weekly resistance line

• EURUSD remains pressured around intraday low, sidelined of late.
• Oscillators back the U-turn from short-term key resistance line.
• 200-SMA, short-term ascending trend line restrict downside moves.
• Bulls need validation from October’s peak for conviction.

EURUSD holds lower ground near 0.9920-30, after posting the intraday low of 0.9903, as traders catch a breather while paring the biggest daily fall since 2015 on early Monday.

In doing so, the EURUSD pair defends the week-start U-turn from a one-week-old descending resistance line. Also portraying the bearish play are the recently stalled bullish MACD signals and the RSI (14) retreat.

Additionally favoring the pair sellers is the latest downside break of the 61.8% Fibonacci retracement level of the September 12-28 downturn, around 0.9945 at the latest.

With this, the quote is likely to decline to a 50% Fibonacci retracement level near 0.9865 before poking the 200-SMA support of 0.9815.

However, an upward-sloping support line from September 28, near 0.9760 by the press time, appears the key for the EURUSD pair buyers as a break of which will convince bears to take control.

Alternatively, the aforementioned 61.8% Fibonacci retracement level near 0.9945 and the weekly resistance line near 0.9965 restrict short-term EURUSD upside before the 1.0000 psychological magnet.

Also acting as an upside filter is the previous monthly peak of 1.0093 and the 1.0100 round figure.

To sum up, EURUSD is likely to remain bearish for a while but the room towards the south appears limited.

EURUSD: Four-hour chart

Trend: Further weakness expected