EUR/USD Price Analysis: Further upside hinges on 1.1670 breakout
- EUR/USD bulls take a breather following six-day uptrend.
- Bullish MACD, 21-DMA cross keeps buyers hopeful to overcome two-month-old upside hurdle.
- 23.6% Fibonacci retracement adds strength to the downside support.
EUR/USD remains sidelined below the 1.1670 key hurdle, around 1.1650 during the initial Asian session on Thursday. The currency major pair poked the crucial horizontal resistance during the early week but failed to provide a follow-though on Wednesday.
Even so, bullish MACD signals and a clear run-up beyond 21-DMA, as well as 23.6% Fibonacci retracement (Fibo.) of July-October upside, near 1.1615, favor the buyers to aim for further advances.
However, a daily closing beyond 1.1670, comprising August lows, becomes necessary. Also adding to the upside filter is the September 22 swing bottom around 1.1685 and 50% Fibo. level near 1.1715.
Should the quote manage to clear the 1.1715 resistance, the late September high near 1.1755 will return to the chart.
Meanwhile, pullback moves remain less problematic until staying beyond 1.1615 support confluence.
Following that, the 1.1600 and 1.1550 may entertain EUR/USD bears before dragging them to the yearly bottom near 1.1525.
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.
