EUR/USD off highs drops toward 1.0900

EUR/USD has been falling at a moderate pace during the last four hours and now it could accelerate as price test the 20-hour moving average amid a retreat in equity prices in the US. 

The euro rose against the US dollar during most of the day and peaked at 1.0945 after the beginning of the American session, hitting the highest level since last Thursday. The rally of the EUR/USD lost strength when it was approaching to the level it had before last week’s European Central Bank meeting. 

Price dropped toward 1.0900 and currently is hovering around 1.0905 where the 20-hour moving average stands. A consolidation below 1.0900 could signal more downside ahead in the very short-term. Despite moving off daily highs, the euro is still up for the day, attempting to build a recovery from multi-month lows that hit yesterday at 1.0850. On a wider perspective, the pair holds a bearish tone and a recovery above 1.1015 (20-day moving average) could change the bias. 

Technical levels 

In terms of technical levels, short-term resistances line up at 1.0945/50 (10-day SMA / daily high), 1.1000/04 (psychological level/Oct 19 high) and 1.1035/40 (Oct 20 high). On the flip side, supports are seen at 1.0900 (intraday), 1.0873 (Oct 26 low), 1.0850 (Oct 25 low) and 1.0821 (Mar 3 low).