EUR/USD Price Analysis: A pennant breakout in the offing, eyes on 1.2200

EUR/USD looks set to test 1.2200, fresh multi-year tops.
A pennant breakout is likely on the hourly chart.
RSI stays bullish while the spot recaptured 21-HMA.

Dhwani Mehta FXStreet

EUR/USD is prepping up for an upside break from its choppy trend around 1.2150, as the bulls regain control in the European session.

The risk sentiment hanging in balance amid US stimulus hopes, renewed coronavirus concerns while investors await the FOMC decision for fresh directives.

From a near-term technical perspective, the main currency pair is on the verge of confirming a pennant breakout if it manages to close the hour above the falling trendline resistance at 1.2156.

The Relative Strength Index (RSI) looks north above the 50.00 level, backing the case for the additional upside. Meanwhile, the price has managed to regain the horizontal 21-hourly moving average (HMA) at 1.2150.

The next stop for the bulls is seen at the 2020 tops of 1.2178, above which a test of the 1.2200 level is inevitable.

On the flip side, the 21-HMA could offer immediate support. A breach of the last could bring the 50-HMA resistance now support at 1.2139 back in play.

An hourly closing below the rising trendline support at 1.2131 could revive the EUR bears, exposing the critical support at 1.2127, where the 100-HMA coincides with the 200-HMA.

EUR/USD: Hourly chart

EUR/USD: Additional levels

EUR/USD

Overview
Today last price	1.2158
Today Daily Change	0.0011
Today Daily Change %	0.09
Today daily open	1.2147

Trends
Daily SMA20	1.2003
Daily SMA50	1.1867
Daily SMA100	1.1834
Daily SMA200	1.146

Levels
Previous Daily High	1.2177
Previous Daily Low	1.2116
Previous Weekly High	1.2166
Previous Weekly Low	1.2059
Previous Monthly High	1.2003
Previous Monthly Low	1.1603
Daily Fibonacci 38.2%	1.2153
Daily Fibonacci 61.8%	1.2139
Daily Pivot Point S1	1.2116
Daily Pivot Point S2	1.2086
Daily Pivot Point S3	1.2055
Daily Pivot Point R1	1.2178
Daily Pivot Point R2	1.2208
Daily Pivot Point R3	1.2239

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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