EUR/USD Price Analysis: Recovery from 50-DMA has bumpy road ahead
|- EUR/USD attacks upper end of immediate trading range following Monday’s corrective bounce.
- Previous resistance line, bearish MACD signals test the recovery moves.
- Three-week-old resistance line adds to the upside filters.
EUR/USD seesaws in a 10-pips trading range surrounding 1.2120 amid Tuesday’s subdued Asian session. In doing so, the currency major pair struggles to extend the previous day’s recovery moves while keeping the last week’s breakdown of the key support lines, now resistance, amid bearish MACD.
Hence, the corrective pullback needs to cross the nearby resistance lines around 1.2125 and 1.2140 to stay in the recovery mode and aim for the 1.2200 threshold.
However, a downward sloping trend line from May 25, around 1.2205, could challenge the EUR/USD run-up afterward.
Meanwhile, bearish MACD and sustained trading below previous supports keep sellers hopeful to revisit the 50-day SMA (DMA) level of 1.2100, not to forget the monthly bottom near 1.2090.
During the quote’s further weakness past 1.2090, May 13 low of 1.2051 and the 1.2000 round figure, quickly followed by May’s bottom close to 1.1985, will be the key levels to watch.
Overall, EUR/USD needs to cross immediate hurdles to defy the bearish bias.
EUR/USD daily chart
Trend: Pullback expected
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