EUR/USD Price Analysis: Retreats towards five-year-old support near 1.0800

• EUR/USD fades bounce off the key support line stretched from early 2017.
• Bearish MACD signals, sustained trading below 200-week SMA keep sellers hopeful.
• Late 2019 lows guard recovery moves, multiple levels marked in 2020 lure bears.

EUR/USD remains on the back foot around 19-month, even as a multi-year-old support line probes bears of late. That said, the major currency pair stays depressed around 1.0850 by the press time, dropping back towards the key trend line stretched from January 2017.

Although oversold RSI tests EUR/USD sellers around important support, close to 1.0810 by the press time, bearish MACD signals and sustained trading below 200-week SMA hint at the pair’s further weakness.

Hence, bears await a clear downside break of the 1.0810 before eyeing May 2020 bottom surrounding 1.0725-30. Following that, the year 2020 low near 1.0635 will be in focus.

In a case where EUR/USD prices remain bearish past 1.0635, odds of witnessing an early 2017 low near 1.0340 on the chart can’t be ruled out.

Meanwhile, the corrective pullback may initially aim for the late 2019 levels around 1.0880 and 1.0980 on the way to regain the 1.1000 threshold.

However, the 61.8% Fibonacci retracement of 2017-18 upside and the 200-week SMA, respectively around 1.1190 and 1.1480 are the key hurdles to watch before writing invitations to the EUR/USD bulls.

EUR/USD: Weekly chart

Trend: Further weakness expected