• EUR/USD stays depressed after the first positive week in six.
• Bearish MACD signals, failure to cross five-week-old resistance line keep sellers hopeful.
• Short-term support line holds the key to further weakness, 200-SMA adds to the upside filters.

EUR/USD begins the trading week on a back foot around 1.1045, after snapping the five-week downtrend.

The major currency pair’s latest weakness takes clues from Thursday’s failure to cross a downward sloping resistance line from February, as well as bearish MACD signals.

However, the 100-SMA and a two-week-old rising trend line, respectively around 1.1030 and 1.0990, challenge short-term downside.

In a case where EUR/USD prices drop below 1.0990, the odds of witnessing the quote’s south-run towards the mid-month bottom surrounding 1.09000 can’t be ruled out.

Meanwhile, recovery moves will initially aim for the aforementioned resistance line, at 1.1105 by the press time.

Following that, the 200-SMA level of 1.1200 will be crucial to watch for the EUR/USD pair’s further upside momentum.

In a case where the pair rises past 1.1200, a horizontal area from early February, near 1.1270-80 will challenge the bulls.

EUR/USD: Four-hour chart

Trend: Further weakness expected