• EUR/USD picks up bids to pare the previous day’s losses.
• 50-day EMA probes bears on the way to January’s low.
• Clear U-turn from 21-day EMA, downside break of three-month-old ascending trend line favor sellers.

EUR/USD renews its intraday high near 1.0705 as it consolidates the previous day’s losses during early Thursday. In doing so, the major currency pair prints mild gains while bouncing off the 50-day Exponential Moving Average (EMA).

However, the quote’s sustained U-turn from the 21-day EMA, marked earlier in the week, joins the clear downside break of the previous support line from November to keep the bears hopeful. It’s worth noting that the bearish MACD signals and steady RSI (14) line also strengthen the downside bias.

As a result, the EUR/USD sellers remain hopeful despite the latest rebound from the short-term key EMA around 1.0680 by the press time. It should be noted that the weekly low surrounding 1.0655 adds to the downside filters.

That said, a successful break of the 1.0655 support could quickly drag the EUR/USD bears toward the previous monthly low near 1.0480. During the fall, the 1.0600 and the 1.0500 round figure may act as intermediate halts.

Meanwhile, the 21-day EMA level of 1.0758 guards the quote’s further recovery before highlighting the support-turned-resistance line from the last November, close to 1.0775 by the press time.

Following that, a two-week-old horizontal resistance near 1.0800-05 could act as the last defense of the EUR/USD bears.

EUR/USD: Daily chart

Trend: Further downside expected