EUR/USD Price Analysis: Bulls knock the door ahead of Fed
|- EUR/USD struggles to extend two-day uptrend, sidelined of late.
- 21-DMA tests falling wedge bullish chart pattern’s confirmation, MACD back the buyers.
- Confluence of 50, 100-DMA offers strong resistance, bears have multiple stops on return.
EUR/USD defends 1.1800 despite the latest pullback from a two-week top, flashed the previous day, amid a quiet Asian morning on Wednesday. That being said, the quote seesaws around 1.1815 by the press time.
The major currency pair rose for the second consecutive day on Tuesday while confirming the falling wedge bullish formation on the daily chart. The MACD histogram also prints the strongest bullish signals since late April, backing the breakout.
However, 21-DMA probes the pair’s immediate upside around 1.1820, a break of which will aim for the fresh monthly high near 1.1900.
It becomes crucial to note that the EUR/USD advances past 1.1900 will be challenged by the 1.1975-80 region comprising late June tops and convergence of the 50-DMA and 100-DMA.
Meanwhile, pullback moves become less worrisome until staying beyond the previous resistance line near 1.1780, a break of which should refresh the monthly low under the present one 1.1751.
In doing so, the stated wedge’s support line close to 1.1730 will be in focus.
Also challenging the EUR/USD bears will be the yearly low near the 1.1700 round figure.
Read: Fed Interest Rate Decision Preview: The horns of a inflation dilemma
EUR/USD: Daily chart
Trend: Further recovery expected
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