The EUR/USD pair is trading with a negative bias for the second consecutive day on Monday, as diminishing odds of another rate cut by the US Federal Reserve (Fed) provide a modest lift to the US Dollar (USD). Spot prices have retreated further from the over two-week high reached last Thursday, with bears now awaiting a sustained break and acceptance below the 1.1600 mark before positioning for deeper losses.
From a technical perspective, last week’s failure near the 50-day Simple Moving Average (SMA) pivotal resistance and the subsequent slide favors the EUR/USD bears. However, neutral oscillators on the daily chart warrant some caution amid growing acceptance that the European Central Bank (ECB) will hold its deposit rate at current levels by the end of next year, a scenario that favors the Euro (EUR) bulls.
As a result, any further decline is likely to attract buyers and find decent support near the 1.1575-1.1570 horizontal zone. A convincing break below this area, however, could prompt technical selling and make the EUR/USD pair vulnerable to testing the 1.1500 psychological mark. Spot prices might eventually drop to the 1.1470-1.1465 region, which corresponds to the lowest level since early August, touched earlier this month.
On the upside, the 50-day SMA, currently positioned near the 1.1660-1.1665 zone, may continue to act as a strong immediate barrier. A move above this level could allow the EUR/USD pair to reclaim the 1.1700 mark. Further buying momentum beyond the 1.1725-1.1730 area would set the stage for additional gains toward the 1.1755-1.1760 region, en route to the 1.1800 round figure and the 1.1815-1.1820 resistance zone.
*Note: This story was corrected on November 17 at 05:53 GMT to clarify that EUR/USD attracted sellers for the second straight day on Monday, not Friday.*
https://bitcoinethereumnews.com/finance/bears-eye-1-1600-break-amid-usd-strength/