EUR/USD Price Analysis: 50-DMA probes four-day uptrend ahead of ECB
- EUR/USD grinds higher at weekly top after four-day rebound from 20-month low.
- Steady RSI, looming bullish cross of MACD favor buyers.
- 100-DMA becomes the key hurdle, 10-DMA limits pullback moves.
- ECB February Preview: Euro bulls hope for a hawkish ECB on hot EU inflation
EUR/USD portrays the pre-ECB anxiety while edging higher past 1.1300 during early Thursday morning in Asia. That said, the major currency pair seesaws around 1.1305 after refreshing the weekly top to 1.1330 the previous day.
The pullback moves could be linked to the quote’s failure to provide a daily closing beyond the 50-DMA level of 1.1310.
However, sustained trading beyond the previous resistance line from January 14 and 10-DMA, respectively around 1.1180 and 1.1260, keeps the EUR/USD buyers hopeful as they brace for the key monetary policy meeting by the European Central Bank (ECB).
Also adding strength to the bullish bias is the steady RSI line and the MACD conditions that tease bulls.
It’s worth noting that a broad support zone from late November near 1.1185-75 becomes the key to challenge EUR/USD bears.
Alternatively, a clear upside break of the 50-DMA level of 1.1310 will enable the EUR/USD bulls to aim for the 100-DMA surrounding 1.1435.
During the run-up, December 2021 top near 1.1385 and the 1.1400 threshold will act as intermediate halts.
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.
