EUR/USD Price Analysis: Friday's low of 1.1168 offers support

• EUR/USD defended Friday's low of 1.1168 in early Asia and may rise to 1.12. 
• Gains may be short-lived, as the weekly and daily chart indicators show bearish reversal patterns. 

EUR/USD is trading largely unchanged near 1.1181 at press time, having defended Friday's low of 1.1168 in early Asia. 

The newfound support, however, is unlikely to hold ground for a long time, as technical charts are reporting bearish conditions. To start with, the pair fell by 0.72% and closed below 1.1212 last week, confirming the reversal lower signaled by the preceding week's bearish pin bar-like candle. 

In addition, the pair formed an inverted hammer on the daily chart on Friday, reinforcing the bearish reversal signaled by the MACD's cross below zero. The indicator is now printing deeper bars below the zero line, a sign of the strengthening of the downward momentum. 

The odds appear stacked in favor of an extension of the drop from the recent high of 1.1422 to 1.11. That said, the pair might revisit levels above 1.12 before suffering deeper declines, as the 15-minute chart is reporting a bullish divergence of the MACD. 

The immediate bias would turn bullish if the bounce ends up invalidating the hourly chart lower highs setup with a move above 1.1154. 

Weekly chart

Trend: Bearish

Technical levels