EUR/USD Price Analysis: Justifies falling wedge breakout to regain 1.0200
|- EUR/USD snaps four-day downtrend at 20-year low, renews intraday high of late.
- Firmer RSI, MACD joins bullish chart pattern’s confirmation to favor buyers.
- 100-HMA lures buyers, sellers have a bumpy road to the south.
EUR/USD buyers return to the table after a four-day absence as the quote renews its intraday high near 1.0215 heading into Thursday’s European session. The major currency pair’s latest gains could be linked to the confirmation of a bullish chart pattern called a falling wedge.
The wedge breakout gains strength as it takes place at the lowest levels in nearly 20 years. Also favoring the upside momentum are the firmer RSI (14) and bullish MACD signals.
That said, the latest recovery could initially aim for the 1.0280 hurdle before directing buyers to battle the 100-HMA level of 1.0340.
In a case where EUR/USD remains firmer past 1.0340, the odds of its rally towards the weekly high near $1.0465 can’t be ruled out.
On the contrary, an immediate ascending support line near 1.0180 restricts nearby declines of the EUR/USD pair.
Following that, the recent low of 1.0161 could test the bears before directing them to the 1.0100 round figure.
Should EUR/USD remains bearish past 1.0100, the bears may aim for the 1.0000 psychological magnet.
EUR/USD: Hourly chart
Trend: Further recovery expected
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