EUR/USD Price Analysis: Bulls remain defensive above 1.1800 post-ECB decision

• EUR/USD remains muted in the early Asian session on Friday.
• Pair remains pressured below 1.1850 following ECB interest rate decision.
• Momentum oscillator throws caution before placing aggressive bids.

EUR/USD edges lower in the Asian trading hours. The pair moves in a very narrow trade band with downside risk as a post effect of the European Central Bank (ECB) showdown. ECB left the key interest rates unchanged at 0.00% as anticipated on Thursday.

At the time of writing, EUR/USD is trading at 1.1823, down 0.02% for the day.

EUR/USD daily chart

On the daily chart, after testing a high of 1.1909 on September 3, the EUR/USD pair has been under selling pressure while taking refuge near the 50-day Simple Moving Average (SMA) at 1.1804.

If the price sustains below the session’s low at 1.1823, it could test the previous day’s low at 1.1804 as the first downside target.

The Moving Average Convergence Divergence (MACD) indicator offers potential for more downside as it remained in the overbought zone with stretched buying conditions.

In doing so, EUR.USD bears could approach the 20-day SMA placed at 1.1788 followed by the 1.1750 horizontal support level.

Alternatively, if the price manages to break intraday high, it could reverse back to the 1.1845 horizontal resistance level.

The price action would then target the 1.1880 horizontal resistance level followed by the high September high of 1.1909.

EUR/USD additional levels