EUR/USD Price Analysis: Bulls eye 1.1385 on monthly resistance break
- EUR/USD stays firmer around monthly top after crossing the key hurdle.
- Bullish MACD signals sustained trading beyond 21-DMA also favor buyers.
- 50-DMA, mid-November tops restrict short-term upside moves, 1.1235-30 appears tough nut to crack for bears.
EUR/USD keeps the monthly resistance breakout around 1.1350 during the early hours of Thursday’s Asian session.
The major currency pair jumped to the highest levels since November 30, also posted the biggest daily gains in a week, after crossing the key hurdle to the north. The trend line breakout also gains support from 21-DMA and bullish MACD signals to keep buyers hopeful.
That said, the 50-DMA and November 16 high near 1.1385-90 gains immediate attention of the EUR/USD buyers, a break of which will direct the pair prices towards 50% Fibonacci retracement (Fibo.) of October-November downside, around 1.1440.
It’s worth noting that the 1.1400 threshold and 1.1530 are extra levels to watch during the quote’s successful run-up.
Alternatively, the EUR/USD pair’s downside below the previous resistance line, near 1.1340, won’t be a signal for its plunge as a convergence of the 21-DMA and 23.6% Fibo. level close to 1.1300, will challenge the declines.
Also acting as strong support is the horizontal area comprising multiple lows marked since November 22, around 1.1235-30, a break of which will recall the yearly low of 1.1186 to the chart.
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.
