• EUR/USD struggles to extend the corrective pullback from key support.
• Bearish MACD signals suggest further decline, 50-DMA acts as immediate support.
• The bulls need a clean break of the 61.8% Fibonacci retracement for confirmation.

EUR/USD remains under pressure below 20-DMA around 1.1340 in Monday’s first Asian session after the biggest weekly decline in five.

Along with the major currency pair’s failures to break through the key short-term moving average, bearish MACD signals also hint at the bear’s firm determination to break an ascending trendline from late November, which recently defended the bearish buyers.

Ahead of the key support line shown near 1.1300 at press time, the 50-DMA level of 1.1315 will test EUR/USD sellers.

The 23.6% Fibonacci (Fibo.) retracement level of the October-November 2021 decline near 1.1300 also acts as a downside filter, a break of which will direct the quote down 2021 at 1.1186, with 1.1230 likely acting as a buffer.

Meanwhile, a sharp upside break of the 20-DMA level around 1.1350 will not be a green signal for EUR/USD bulls as 50% Fibo. and the monthly high around 1.1435 and 1.1480 respectively will challenge the pair’s recovery.

Even if the pair breaks above 1.1480, the 61.8% Fibonacci retracement level of 1.1500 will be a crucial resistance to watch for traders in the pair.

In summary, EUR/USD prices are at a critical point of support as traders await the verdict from the Fed.

EUR/USD: daily chart

Trend: further declines expected