- EUR/USD steps back from the key SMA inside a bullish chart formation.
- Upbeat MACD conditions favor bulls, short-term rising trend line tests sellers ahead of monthly support line.
EUR/USD consolidates recent gains amid a subdued initial Asian session on Tuesday. The major currency pair jumped to the highest in a week the previous day but couldn’t stay beyond 100-SMA, recently around 1.2190. However, a two-day-old support line joins the upbeat MACD signals to keep buyers hopeful inside a bullish flag chart pattern.
In addition to the nearby support line around 1.2165, an upward sloping trend line from early May, close to 1.2115, also challenges the EUR/USD sellers before directing them to the flag’s support near 1.2095.
It should, however, be noted that the bearish impulse below 1.2095 will make the major currency pair vulnerable to retest the previous month’s swing lows near 1.2050 and 1.1985.
Alternatively, a clear upside break of 100-SMA, around 1.2200, propels the quote to confirm the bullish chart formation with a clear run-up beyond the 1.2216 key hurdle.
Following that, the previous month’s top near 1.2266 will offer an intermediate halt during the rally targeting the yearly peak of 1.2349.
EUR/USD four-hour chart
Trend: Bullish
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