EUR/USD Price Analysis: Sellers find some respite near 1.1580

  • EUR/USD remains muted in the early Asian session on Friday.
  • The pair remains pressured below 1.1600 following the USD strength.
  • Momentum oscillator throws caution before placing aggressive bids.

EUR/USD seems to be consolidating some losses on Friday morning. The pair moves in a very narrow trade band with a downside risk ahead of the eurozone PMI data. At the time of writing, EUR/USD is trading at 1.1579, down 0.01% for the day.

EUR/USD daily chart

On the daily chart, the EUR/USD pair has come under renewed selling pressure after testing the highs near 1.1900 since the beginning of the September series (September 3). The pair ended the month breaking below the yearly lows around 1.1600 on this Wednesday. Now, If the price sustains the session’s low at 1.1579, it could test the previous day’s high at 1.1609 as the first upside target.

The Moving Average Convergence Divergence (MACD) indicator offers potential for more upside as it remains in the oversold zone with stretched selling conditions. Any uptick in the MACD would amplify the buying toward the 1.1665 horizontal resistance level followed by the psychological 1.1700 mark.

EUR/USD weekly chart

Alternatively, if the price reverses direction, the EUR/USD bears would once again dominate the trend with their eyes on the previous session’s low of 1.1562. The price action would then target the weekly lows of July 24, 2020 at 1.1402.

EUR/USD additional levels