EUR/USD Price Analysis: Break of monthly support line, risk-off direct bears toward 1.1800

• EUR/USD wavers around intraday low after recently failing to bounce off 1.1832.
• US dollar bounces off lowest in one week as challenges to risk increase.
• Bulls need to overcome September 10 top to regain the controls.

EUR/USD consolidates near the day’s low, currently down 0.13% on a day around 1.1840, amid early Thursday. The pair’s latest losses could be traced to the break of an upward sloping trend line from November 04 as well as the fresh risk aversion wave taking clues from the coronavirus (COVID-19), Brexit and global angst versus China.

Considering the normal RSI conditions, backed by the clear break of the previous support line, EUR/USD sellers eye a 21-day SMA level of 1.1788 during the further declines. However, the 1.1800 can act as an intermediate halt.

In a case where the risk-off helps the US dollar to reverse the monthly losses, the mid-October low near 1.1690 and the monthly bottom surrounding 1.1600 could gain the market’s attention.

Alternatively, an upside break of the support-turned-into-resistance, at 1.1883 now, will be probed by the 1.1900 round-figure.

It should also be noted that the horizontal area around 1.1920-25, comprising highs marked on September 10 and so far in November, becomes a tough nut to crack for the EUR/USD buyers past-1.1900.

EUR/USD daily chart

Trend: Further weakness expected