EURUSD drops back below 200-day EMA to keep sellers hopeful

Sluggish markets and wobbling Treasury yields keep EURUSD below the key EMA amid a quiet session on early Thursday. However, the scheduled release of the US Durable Goods Orders for May probes the pair sellers as Fed policymakers and chatters over President Biden’s stimulus have already poked safe-haven demands of the US dollar. Technically, the currency pair battles the 200-day EMA level of 1.1940 as RSI recovers from the oversold area, flashing brighter odds for the upside move towards the 1.2000 threshold. Though, the quote’s further advances will be capped by lows marked during late January and early June around 1.2050.

On the contrary, the current bearish impulse aims for an ascending support line from March-end, near 1.1855. Following that, a bit broader rising trend line, near 1.1760, will be crucial to watch as it holds the key to further south-run to yearly low and November 2020 bottom, respectively near 1.1710 and 1.1600. It’s worth noting that EURUSD is in a consolidation mode and hence downside becomes more acceptable than the otherwise case.