EUR/USD Price Analysis: Pokes 1.1300 amid bullish RSI divergence
|- EUR/USD picks of bids to consolidate recent losses.
- RSI divergence hints at further upside towards breaking weekly resistance.
- 50-SMA, one-month-old descending trend line offer extra challenges to bulls.
- Sellers eye clear break of 1.1260 for fresh entries.
EUR/USD buyers flirt with the 1.1300 threshold, following a quick drop to 1.1258. In doing so, the currency major pair traces upbeat technical signals during the initial Asian session trading on Tuesday.
It’s worth noting that the EUR/USD prices diverge from the RSI conditions since November 18, signaling further advances as the quote is yet to track the bullish momentum signals.
With the bullish RSI divergence suggesting further advances of the stated currency pair, the immediate hurdle of the weekly resistance line around 1.1315 becomes imminent to be knocked down by buyers.
However, the pair’s further advances will be challenged by 50-SMA and descending resistance line from October 28, near 1.1365 and 1.1460. During the run-up, the November 11-12 lows around 1.1430 may offer an intermediate halt.
Alternatively, pullback moves will aim for 1.1260 and 1.1230 levels before directing the EUR/USD bears to the recently flashed yearly low surrounding 1.1185.
In a case where the pair sellers dominate below 1.1185, June 2020 swing low near 1.1160 and March 2020 peak close to 1.1145-50 will be in focus.
EUR/USD: Four-hour chart
Trend: Further recovery expected
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