EUR/USD Price Analysis: Fades bounce off 200-day SMA below 1.1900

• EUR/USD fizzles recovery moves from 15-week low, key SMA.
• Sustained trading below the key support line, now resistance, battles weak RSI conditions.

Despite recently picking up from the intraday low of 1.1888 to 1.891, EUR/USD prints 0.10% losses during early Wednesday. In doing so, the major currency pair fades the previous day’s U-turn from 200-day SMA while keeping downside break of a key support line, portrayed last week.

Although failures to keep the bounce from the crucial SMA, coupled with a sustained break of earlier support line, favor EUR/USD sellers to target 1.1831 level, comprising 200-day SMA, any further weakness may have to reject nearly oversold RSI.

In that case, the 1.1750, the 1.1700 threshold and November 2020 low near 1.1600 should gain the market’s attention.

Meanwhile, fresh run-up will eye the previous support line, at 1.2000 now, ahead of the monthly top near 1.2115.

Also acting as the upside barrier is the last month’s peak surrounding 1.2250.

To sum up, EUR/USD remains depressed near the key support but further weakness needs a strong reason, which in turn highlights US stimulus talks.

EUR/USD daily chart

Trend: Bearish