EUR/USD Price Analysis: Sellers approach 0.9700 with eyes on fresh yearly low

• EUR/USD takes offers to refresh intraday low during the four-day downtrend.
• U-turn from 50-DMA, clear break of 10-DMA favor sellers.
• Impending bear cross on MACD, downbeat RSI add strength to the downside bias.
• Bearish channel keeps sellers hopeful of witnessing fresh multi-year bottom.

EUR/USD drops to a fresh one-week low around 0.9720 heading into Monday’s European session. In doing so, the major currency pair extends the previous week’s pullback from the 50-DMA while also respecting Friday’s downside break of the 10-DMA.

Additionally favoring the EUR/USD sellers is the impending bear cross of the MACD, as well as the downbeat RSI (14), not oversold.

With this, the quote is likely to decline further toward the yearly low marked during the last month around 0.9535. On their way, the EUR/USD bears may take a breather around 0.9680.

If the prices remain weak past 0.9535, the lower line of the downward sloping bearish chart pattern, namely the trend channel, could lure the bears around 0.9480.

On the contrary, the 10-DMA hurdle surrounding 0.9790 restricts the quote’s immediate upside ahead of highlighting the 50-DMA resistance of 0.9985.

Following that, the 1.0000 psychological magnet and the upper line of the stated channel, close to 1.0050, will be crucial to determine the trend change.

EUR/USD: Daily chart

Trend: Further downside expected