EUR/USD Price Analysis: Euro bears keep reins below 1.0980 despite corrective bounce ahead of US Retail Sales

EUR/USD struggles to defend the corrective bounce off five-week low.

Cautious mood ahead of US Retail Sales, holidays in multiple European markets prod Euro traders.

Clear downside break of previously key supports favors EUR/USD bears to approach 1.0780 support confluence.

100-DMA, multi-month-old previous support line challenge recovery moves.

EUR/USD remains sidelined near 1.0910 as it tries hard to defend the previous day’s corrective bounce off the monthly low amid a sluggish Tuesday morning in Europe. In doing so, the Euro pair aptly portrays the traders’ anxiety ahead of the US Retail Sales for July. Also restricting the Euro pair’s immediate moves could be holidays in the bloc.

Also read: EUR/USD stays vulnerable at five-week low near 1.0900 ahead of US Retail Sales

Even so, the Euro sellers occupy the driver’s seat as bearish MACD signals join the downside break of an ascending trend line from September 2022 and the 100-DMA, respectively near 1.0980 and 1.0930 in that order.

Also keeping the Euro bears hopeful is the absence of the oversold RSI (14) line.

With this, the EUR/USD pair seems more likely to stay on the way to testing the 1.0780 support confluence comprising the 200-DMA and a nine-month-old rising trend line.

Following that, the Euro pair becomes vulnerable to testing May’s low of around 1.0635.

Alternatively, a clear upside break of the 100-DMA level of around 1.0930 can recall the EUR/USD buyers but they need validation from the support-turned-resistance line stretched from September 2022, close to 1.0980 at the latest.

In a case where the Euro pair manages to stay firmer past 1.0980, it can aim for April’s high of around the 1.1000 psychological magnet.

EUR/USD: Daily chart

Trend: Bearish