EUR/USD Price Analysis: Grinds higher past 100, 200 HMA confluence
- EUR/USD prints three-day uptrend as it seesaws around intraday top.
- MACD teases buyers but rising wedge formation challenges upside momentum.
- One-week-old horizontal support adds to the downside filters.
EUR/USD stays defensive around 1.0645, portraying a three-day winning streak amid a sluggish Wednesday morning in Europe.
In doing so, the major currency pair justifies the previous bounce off the key Hourly Moving Averages (HMAs) inside a short-term rising wedge bearish chart formation.
It’s worth noting that the impending bull cross on the MACD and the quote’s sustained trading beyond the 100 and 200-HMA confluence, near 1.0620, keep the EUR/USD buyers hopeful.
Also favoring the EUR/USD bulls is the quote’s U-turn from the 1.0580-75 horizontal support area.
However, a rejection of the three-day-old rising wedge is necessary for the pair buyer’s conviction. As a result, successful trading beyond 1.0675 could push back the sellers.
Following that, an uptick to the monthly high flashed on December 15, around 1.0735, becomes imminent.
In the case where the EUR/USD price remains firmer past 1.0735, May’s peak of 1.0786 and the 1.0800 round figure will be in the spotlight.
On the contrary, a downside break of 1.0630 will confirm the rising wedge bearish formation. Even so, the convergence of the stated HMAs, near 1.0620, could challenge the EUR/USD bears.
Should the EUR/USD remains weak past 1.0620, the one-week-old horizontal support area surrounding 1.0580-75, holds the key to the pair’s south-run towards the monthly low near 1.0390.
EUR/USD: Hourly chart
Trend: Limited 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.
