EUR/USD Price Analysis: Consolidates losses below 10-day SMA

• EUR/USD takes the bids after declining for consecutive three days.
• Sellers eye an ascending trend line from November 02, bulls need to cross 1.2230 for confirmation.

EUR/USD extends bounce off 1.2152 to 1.2175 during the Asian session on Wednesday. In doing so, the currency major snaps the previous three days’ downtrend. However, the quote remains below 10-day SMA, which in turn suggests weakness in underlying momentum.

Hence, a seven-week-old support line, currently around 1.2130 remains on the EUR/USD seller’s radar while a 21-day SMA near 1.2100 can challenge further downside.

It should, however, be noted that any further weakness past-1.2100 will target a clear break below the December 09 low of 1.2058 to revisit the monthly bottom surrounding 1.1925.

Alternatively, an upside clearance of 10-day SMA, at 1.2185 now, will have to pierce Tuesday’s open near 1.2230 to recall the buyers.

Following that, the monthly high of 1.2272 and the 1.2300 round-figure will gain the market’s attention.

EUR/USD daily chart

Trend: Further weakness expected