EUR/USD Price Analysis: 50-day SMA guards immediate upside
- EUR/USD wavers inside a five-pip trading range after refreshing one-month high.
- Bullish MACD, sustained trading above 200-day SMA favor buyers.
- Six-week-old horizontal area adds to the upside barriers.
Having refreshed the highest levels since March 18 the previous day, EUR/USD bulls catch a breather around 1.1950 during Wednesday’s Asian session. In doing so, the quote seesaws around 38.2% Fibonacci retracement of January–March downside.
It should, however, be noted that the currency major’s ability to stay strong beyond 200-day SMA, backed by the strongest bullish MACD signals since early December 2020 suggests the quote’s further upside.
Though, a clear run-up past-50-day SMA level of 1.1965 becomes necessary for the EUR/USD buyers before confronting a horizontal area comprising multiple levels marked in March, around 1.1988-95.
It’s worth mentioning that the 1.2000 threshold and 50% Fibonacci retracement level of 1.2026 add to the upside filters.
Meanwhile, a daily close below the 200-day SMA level of 1.1906 can recall EUR/USD sellers targeting the early March low near 1.1835.
However, 1.1760 and the previous month’s low near the 1.1700 round-figure will question the pair’s any further weakness.
EUR/USD daily chart
Trend: Further upside expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
