EUR/USD Price Analysis: Further upside past 1.1800 hinges on bullish flag confirmation
- EUR/USD remains sidelined inside a bullish chart pattern.
- Sustained trading above 200-SMA, upbeat Momentum line keep buyers hopeful.
- 50-SMA adds strength to the flag’s resistance line, sellers have bumpy road on their return.
EUR/USD edges higher around 1.1820, keeping the short-term bullish flag intact, during Thursday’s Asian session. In doing so, the major currency pair also stays above 200-SMA amid an upbeat Momentum line.
While the bulls are geared for further upside, the resistance line of the stated bullish formation joins 50-SMA to challenge the advances around 1.1830.
Even if the pair buyers manage to cross the 1.1830 hurdle, the monthly horizontal line and early September lows, respectively near 1.1845 and 1.1855, will add to the upside filters.
On the contrary, 200-SMA restricts the pair’s immediate declines, around 1.1790, ahead of 50% and 61.8% Fibonacci retracement levels of August 20 to September 03 rise, near 1.1785 and 1.1755 in that order. Also challenging the bears is the support line of the stated flag close to 1.1750.
Hence, EUR/USD bulls have a tough task ahead but the sellers may not succeed in taking back the controls, suggesting a gradual grind to the north.
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.
