- EUR/USD battles short-term key hurdle to the north, sidelined of late.
- 50-DMA, seven-week-old horizontal resistance guard immediate upside.
- Bullish MACD signals, successful trading above 21-DMA keeps buyers hopeful.
- Four-month-old descending trend line acts as extra resistance.
EUR/USD bulls attack crucial resistance around 1.1385, poking the highest level since mid-November, during the early Asian session on Monday. That said, the quote flashes 1.1375 level by the press time.
In doing so, the major currency pair battles the 50-DMA and a horizontal area comprising multiple resistances since mid-November.
Given the bullish MACD signals and the pair’s successful run-up beyond 21-DMA, EUR/USD buyers are likely to overcome the immediate hurdle.
However, a downward sloping trend line from early September, around 1.1440 by the press time, will be critical to watch for the bulls afterward, a break of which will direct the run-up towards October’s low and 100-DMA, respectively near 1.1525 and 1.1540.
On the contrary, pullback moves may aim for a 21-DMA retest, close to 1.1310 at the latest, before challenging an ascending support line from late November around 1.1250.
Should EUR/USD prices break the 1.1250 support, the bears will have a rush towards the year 2021 low near 1.1185.
EUR/USD: Daily chart
Trend: Further upside 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 rises toward 1.0850 as USD struggles to recover
EUR/USD has regained its traction and rose to the 1.0850 area after having retreated toward 1.0800 earlier in the session. The US Dollar struggles to stage a decisive rebound despite upbeat consumer confidence data from the US, allowing the pair to continue to push higher.
GBP/USD advances to fresh daily hgihs near 1.2350
Following a correction to the 1.2300 area, GBP/USD reversed its direction and advanced toward 1.2350. Although Wall Street's main indexes are trading mixed on Tuesday, the US Dollar stays on the back foot and helps the pair gather bullish momentum.
Gold clings to daily recovery gains above $1,960
Gold price continues to trade in positive territory above $1,960 in the American session on Tuesday. As US stocks trade mixed, the benchmark 10-year US Treasury bond yield pulls away from session highs and provides a boost to XAU/USD.
Ethereum (ETH) options traders turn bearish ahead of the token unlock
Ethereum is holding steady above the $1,700 level despite slight bearish sentiment among options traders. Analysts have noted a rise in open interest in Ethereum, as co-founder Lubin assures that the altcoin is not a security.
S&P 500: With banking crisis in rear view, market pushes index closer to 4,000
The S&P 500 on Monday moved ahead cautiously without much fanfare after the US government agreed to sell $72 billion worth of Silicon Valley Bank assets to First Citizens Bank (FCNCA).