EUR/USD Price Analysis: Bulls brace for another battle with five-week-old hurdle
|- EUR/USD picks up bids to reverse pullback from nine-month high, bounces off 21-EMA.
- Impending bear cross on MACD, RSI divergence tease sellers.
- Ascending trend line from mid-December appears a tough nut to crack for bulls.
EUR/USD resumes run-up towards the short-term key hurdle as it rises to 1.0875 during early Tuesday, following a retreat from the nine-month high amid late trading hours of the previous day. In doing so, the major currency pair bounces off the 21-Exponential Moving Average (EMA), around 1.0850 by the press time.
However, an upward-sloping resistance line from December 15, 2022, close to 1.0920 at the latest, challenges the EUR/USD pair’s immediate upside.
In addition to the immediate resistance line, the looming bear cross on the MACD and the bearish RSI divergence, a condition where the higher high in price doesn’t accompany the higher high in the indicator, also challenge the EUR/USD buyers.
It should be noted that the April 2022 peak surrounding 1.0940 acts as an additional upside hurdle, other than the 1.0920, to challenge the pair buyers before directing them towards the 1.1000 round figure.
Alternatively, the 21-EMA and the 50-EMA restrict immediate EUR/USD downside near 1.0850 and 1.0820 respectively.
Following that, the late December 2022 high near 1.0715 and the 1.0700 could please the pair sellers.
In a case where the EUR/USD pair remains bearish past 1.0700, an ascending support line from November 21, close to 1.0665 at the latest, will act as the last defense of the buyers.
EUR/USD: Four-hour chart
Trend: Limited upside expected
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