EUR/USD Price Analysis: Fades bounce off 100-SMA below 1.2100
- EUR/USD retreats after bouncing off one-week low the previous day.
- Short-term resistance line guards immediate upside ahead of the 1.2100 threshold.
- Convergence of 50% Fibonacci retracement, 200-SMA becomes the key support.
EUR/USD fails to extend the previous day’s recovery moves beyond 1.2066, easing to 1.2057 amid the initial Asian session on Tuesday. In doing so, the currency major pair fizzles the previous day’s bounce off 100-SMA below a three-day-old resistance line.
It should, however, be noted that the easing bearish bias of MACD and the pair’s sustained trading beyond the key SMA seems to favor EUR/USD buyers in crossing the nearby hurdle around 1.2080.
Following that, the 1.2100 round figure and the previous month’s high near 1.2150 should test the bulls.
Meanwhile, the pair’s declines below the 100-SMA level of 1.2025 can stall near the 1.2000 psychological magnet, if not then the 200-SMA and 50% Fibonacci retracement of March-April upside around 1.1925-20 become the key support to watch.
If at all the EUR/USD drops below 1.1920, odds of the pair’s south-run to an area surrounding 1.1860, including multiple levels marked in early April, can’t be ruled out.
EUR/USD four-hour 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.
