EUR/USD Price Analysis: Confirms falling wedge but bulls needs validation from 1.0930
- EUR/USD confirmed bullish chart formation but struggles below three-week-old previous support line.
- Bullish MACD, higher lows favor buyers to overcome the immediate hurdle and aim for 200-SMA.
- Multiple supports to test bears before March 2020 low.
EUR/USD grinds lower around 1.0900, following the first positive daily closing in six. In doing so, the major currency pair fades Monday’s bounce off the lowest levels last seen during May 2020.
Even so, the resistance-turned-support line of a two-week-old falling wedge and bullish MACD signals keep EUR/USD buyers hopeful.
Though, a clear upside break of the previous support line from mid-February, around 1.0930 by the press time, becomes necessary to convince the pair buyers.
Following that, a run-up towards the 200-SMA level near 1.1260 and the 1.1300 round-figure can’t be ruled out.
It’s worth noting that February’s high around 1.1500 becomes crucial resistance for the pair buyers to watch during upside past 1.1300.
Alternatively, a downside break of 1.0885 defies the latest falling wedge confirmation, which in turn will direct the EUR/USD prices towards the latest bottom surrounding 1.0800.
Should EUR/USD bears keep reins past 1.0800, the lower line of the wedge and April 2020 bottom, respectively around 1.0740 and 1.0725, will test the south-rub before directing the quote towards the year 2020’s low of 1.0635.
EUR/USD: Four-hour chart
Trend: Recovery 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.
