- EUR/USD picks up bids after a subdued performance on Monday.
- Sustained trading beyond 200-SMA favors bulls to target 61.8% Fibonacci retracement as nearby aim.
- Weaker Momentum line challenges the up-moves but pennant confirmation could propel the buyers.
After a dull start to the week, EUR/USD gains upside momentum, poking 1.1875 amid the early Tuesday morning in Asia.
In doing so, the major currency pair portrays a bullish pennant above the 200-SMA on the four-hour (4H) chart. It should be noted, however, that the recently weaker Momentum line tests the bulls. Hence, the pair traders seem to wait for confirmation for fresh positions.
Given the pair’s sustained trading beyond 200-SMA, the bullish chart pattern’s confirmation, requiring a clear upside break of 1.1900, seems more likely.
Following that, the quote may take a breather around 1.1910 before rallying towards the theoretical target of 1.2060. During the rise, late June’s peak surrounding 1.1975 and the 1.2000 threshold may offer intermediate halts.
Meanwhile, a downside break of 200-SMA level of 1.1850 will quickly drag the EUR/USD prices to July 22 tops surrounding 1.1830 before directing sellers to the 1.1800 round figure and the previous month’s bottom near 1.1750.
In a case where the pair bears remain dominant past 1.1750, the yearly low close to 1.1700 will be important to watch.
EUR/USD: Four-hour chart
Trend: Further recovery expected
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD holds steady above 1.0650, awaits US data and Fed verdict
EUR/USD is trading sideways above 1.0650 amid a softer risk tone and broad US Dollar strength on Wednesday. With European markets closed for Labor Day, the pair awaits the US employment data and the Fed policy announcements for the next directional move.
GBP/USD flatlines below 1.2500 ahead of US data, Fed
GBP/USD is off the lows but stays flatlined below 1.2500 early Wednesday. The US Dollar strength caps the pair's upside amid a cautious mood ahead of the top-tier US employment data and the all-important Fed policy announcements.
Gold treads water below $2,300, as Fed decision looms
Gold price is catching a breather below $2,300 on Wednesday, having hit a fresh four-week low at $2,281. Traders refrain from placing fresh directional bets on Gold price, anticipating the all-important US Federal Reserve interest rate decision due later in the day.
A new stage of Bitcoin's decline
Bitcoin's closing price on Tuesday became the lowest since late February, confirming the downward trend and falling under March and April support and the psychologically important round level.
ADP Employment Change Preview: US private sector expected to add 179K new jobs in April
The ADP report is expected to show the US private sector added 179K jobs in April. A tight labour market and sticky inflation support the Fed’s tight stance. The US Dollar seems to have entered a consolidative phase.