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.
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
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.
