EUR/USD Price Analysis: Bulls eye 1.1385 resistance on the key day

EUR/USD grinds higher following the strong rebound from 21-DMA that crossed 50-DMA hurdle.
10-week-old horizontal resistance challenges immediate upside ahead of descending trend line from early September.
Higher lows of prices, RSI keep buyers hopeful.
Sellers need to conquer monthly support line to retake controls.

Anil Panchal FXStreet

EUR/USD retreats from weekly top to 1.1365 during Wednesday’s Asian session. Even so, the major currency pair remains on the buyer’s radar as they brace for the key US inflation data.

Read: US Consumer Price Index December Preview: The Fed’s die is cast

The quote not only bounced off 21-DMA but also crossed the 50-DMA to post a considerable upside bias the previous day. Additionally, the pair’s recently higher lows of prices join the same pattern on RSI to also portray a bullish scenario.

However, double tops marked since mid-November around 1.1385 guard the quote’s immediate upside, a break of which will direct EUR/USD buyers towards a multi-day-old descending trend line resistance near 1.1400.

It should be noted, though, that a clear run-up beyond the 1.1400 threshold will be enough to propel the quote towards the 100-DMA level of 1.1512 and then to October’s low near 1.1525.

Meanwhile, pullback moves may initially be challenged by the 21-DMA and 50-DMA, close to 1.1335 and 1.1320 in that order.

Following that, an ascending support line from December 15, near 1.1290, becomes crucial to watch as a break of which will recall the EUR/USD sellers targeting 2021 low of 1.1186.

EUR/USD: Daily chart

Trend: Further upside expected

Additional important levels

Overview
Today last price	1.1368
Today Daily Change	0.0002
Today Daily Change %	0.02%
Today daily open	1.1366

Trends
Daily SMA20	1.1317
Daily SMA50	1.1342
Daily SMA100	1.1516
Daily SMA200	1.1738

Levels
Previous Daily High	1.1375
Previous Daily Low	1.1313
Previous Weekly High	1.1379
Previous Weekly Low	1.1272
Previous Monthly High	1.1386
Previous Monthly Low	1.1222
Daily Fibonacci 38.2%	1.1352
Daily Fibonacci 61.8%	1.1337
Daily Pivot Point S1	1.1328
Daily Pivot Point S2	1.1289
Daily Pivot Point S3	1.1265
Daily Pivot Point R1	1.139
Daily Pivot Point R2	1.1414
Daily Pivot Point R3	1.1452

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.

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