EUR/USD Price Analysis: Eases below 1.0440 hurdle inside falling wedge
|- EUR/USD retreats from intraday high inside a bullish chart pattern.
- Bullish MACD signals, higher lows marked since May 13 favor buyers.
- 50-HMA, the upper line of the wedge guard immediate advances, bears can aim for yearly low.
EUR/USD remains pressured around 1.0425-30, fading late Friday’s bounce off a fortnight low inside a falling wedge bullish chart formation.
In doing so, the major currency pair not only retreats from the upper line of the stated wedge but also steps back from the 50-HMA. However, the bullish MACD signals the lows marked since May 13 keep buyers hopeful.
However, the intraday sentiment hints at the pair’s further weakness towards the 1.0400 threshold.
Following that, the stated wedge’s support line, around 1.0355 and the yearly low of 1.0349, marked in May, will be important to watch for the bears.
In a case where the EUR/USD drops below 1.0349, the January 2017 bottom of 1.0340 could act as validation points for the further south-run.
Alternatively, buyers need to provide a successful break of the 50-HMA and the wedge’s upper line, around 1.0445, to retake controls.
Even so, the 200-HMA level surrounding 1.0515 could act as an extra filter to the north before directing the north-run towards the late June swing high near 1.0615.
Overall, EUR/USD is likely to witness intrday weakness but could portray a corrective pullback in the short-term.
EUR/USD: Hourly chart
Trend: Corrective pullback expected
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