EUR/USD Price Analysis: Holds 61.8% Fib support, but notable bounce remains elusive

• EUR/USD defends key support but struggles to chart a notable bounce. 
• With the spot holding below 1.0890, the path of least resistance remains to the downside. 

The mood in the EUR/USD market remains downbeat for the fifth straight day, with the pair hovering near 1.0850 at press time, having hit a low of 1.0833 in early Asia.

While sellers pushed the pair down by nearly 1% on Thursday, they failed to establish a foothold under 1.0831 - the 61.8% Fibonacci retracement of the rally from 1.0636 to 1.1148.

So far, however, the bear failure at key support has failed to invite stronger buying pressure. The bounce from 1.0831 fizzled out near 1.0865 in the overnight trade.  

From a technical perspective, the bias remains bearish, as the head-and-shoulders breakdown seen on the hourly chart has opened the doors for a drop to recent lows under 1.0650. The bearish case would be invalidated if the spot rises above the former support-turned-hurdle of the head-and-shoulders neckline hurdle, currently at 1.0890.

Hourly chart

Trend: Bearish

Technical levels