EUR/USD Price Analysis: Bears battle four-month-old support near 1.1750

• EUR/USD remains pressured around two-week low, extends Friday’s break of ascending support trend line from November.
• Downbeat Momentum, sustained trading below the key supports favor bears.
• July’s low challenges sellers targeting the yearly low.

EUR/USD takes offers around 1.1755, teasing the previous month’s low flashed on Friday, amid the initial Asian session on Monday. The major currency pair dropped heavily the previous day after breaking a nine-month-long support line, now resistance, amid broad US Dollar strength.

The pair bears gain support from a downtick the Momentum line as they battle an upward sloping support line from March-end near July’s low.

Hence, a daily closing below 1.1750 becomes necessary for the EUR/USD sellers to challenge the yearly low surrounding 1.1700.

Following that, the currency pair’s slump to the November 2020 bottom near 1.1600 becomes imminent.

Alternatively, a corrective pullback may aim for the previous support line from late 2020, around 1.1795–1800.

However, a convergence of six-week-old descending trend line and 61.8% Fibonacci retracement of November 2020 to January 2021 upside, close to 1.1890–1900, will be a tough nut to crack for the EUR/USD buyers afterward. Also acting as the key hurdle for the pair buyers is the 50-DMA level of 1.1920.

EUR/USD: Daily chart

Trend: Bearish