EUR/USD Price Analysis: Falling wedge on 4H tests bearish impulse below 1.2100

EUR/USD wavers in a small range after bouncing off seven-week low.
Bullish chart pattern, recovering MACD keep buyers hopeful.
Early February lows, 61.8% Fibonacci retracement add to the downside filters.

Anil Panchal FXStreet

EUR/USD portrays choppy trading moves between 1.2075 and 1.2080, currently near 1.2076, during Tuesday’s Asian session. The pair dropped to the lowest since December 02 the previous day before taking a U-turn from the support line of a two-week-old falling wedge chart pattern on the four-hour (4H) play.

Considering the recovery in prices backed by the improving MACD signals, the quote is likely to direct the corrective pullback towards the 1.2100 threshold, for now.

However, any further upside past-1.2100 needs to cross the falling wedge’s resistance line, at 1.2116 now, to recall the EUR/USD buyers eyeing to refresh the multi-month high above 1.2349.

During the upside, Wednesday’s top around 1.2210 can offer an intermediate halt while April 2018 peak surrounding 1.2415 can please the bulls afterward.

On the contrary, the quote’s U-turn from present levels will have strong support around 1.2045/40 area including the pattern’s lower line and December 02 trough.

Even if the EUR/USD prices remain weak past-1.2040, 61.8% Fibonacci retracement of November 23 to January 06 upside and November 30 top, around 1.2010-1.2000, will challenge the south-run.

EUR/USD four-hour chart

Trend: Pullback expected

Additional important levels

Overview
Today last price	1.2078
Today Daily Change	1 pips
Today Daily Change %	0.01%
Today daily open	1.2077

Trends
Daily SMA20	1.2205
Daily SMA50	1.2087
Daily SMA100	1.1931
Daily SMA200	1.1617

Levels
Previous Daily High	1.2087
Previous Daily Low	1.2054
Previous Weekly High	1.2227
Previous Weekly Low	1.2077
Previous Monthly High	1.231
Previous Monthly Low	1.1924
Daily Fibonacci 38.2%	1.2066
Daily Fibonacci 61.8%	1.2074
Daily Pivot Point S1	1.2058
Daily Pivot Point S2	1.2039
Daily Pivot Point S3	1.2024
Daily Pivot Point R1	1.2091
Daily Pivot Point R2	1.2106
Daily Pivot Point R3	1.2125

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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