EUR/USD Price Analysis: Bulls seem tired around mid-1.2100s
|- EUR/USD trades indecisive after refreshing one-week high the previous day.
- Monday’s Doji, downbeat Momentum line favor sellers targeting 1.2085-80 support confluence.
- Four-month-old horizontal resistance acts as the key upside barrier.
EUR/USD fades late Monday’s recovery moves while taking rounds to 1.2150 amid the initial Asian session on Tuesday. In doing so, the quote remains inside the 110-pip trading range but a Doji candlestick and downward sloping Momentum line favor sellers.
It should, however, be noted that the major currency pair needs to stay below 1.2170 to justify the bearish formation. Though, a run-up beyond the 1.2170 hurdle will have a limited upside as multiple resistances since late January stand tall to test the EUR/USD bulls around 1.2180-90.
Even if the EUR/USD prices rally beyond 1.2190, the 1.2200 and February’s high near 1.2245 will be the key to watch.
Meanwhile, the 1.2100 threshold can entertain short-term sellers ahead of challenging the EUR/USD bears with a 1.2085-80 support confluence comprising 21-day SMA and an ascending support line from March 31.
Should the quote drops below 1.2080, the 1.2000 round-figure may stop further downside, if not then the monthly low near 1.1985 can act as an extra downside filter.
EUR/USD daily chart
Trend: Pullback expected
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.