EUR/USD Price Analysis: Grinds higher past 1.0900 within rising wedge
- EUR/USD defends the latest bounce off a bearish chart formation’s lower line.
- Looming bear cross on MACD teases Euro pair sellers inside three-week-old rising wedge.
- Bulls need validation from 1.1000-05 to renew yearly high while 50-DMA acts as an extra filter towards the south.
EUR/USD clings to mild gains around 1.0915-20 during Wednesday’s sluggish Asian session as traders await the all-important US Consumer Price Index (CPI) for March and the Minutes of the latest Federal Open Market Committee (FOMC) Monetary Policy Meeting.
In doing so, the Euro pair keeps the previous day’s U-turn from the lower line of a three-week-old rising wedge bearish chart pattern.
However, the impending bear cross on the MACD and the quote’s multiple failures to remain firmer past 1.0900 teases EUR/USD sellers on a key day.
That said, the pair’s pullback needs to conquer the stated bearish pattern’s support line, around 1.0870 at the latest, to confirm the rising wedge breakdown and lure the sellers.
Following that, the 50-DMA support of near 1.0735 can act as an intermediate halt during the pair’s anticipated fall toward the theoretical target of around 1.0610.
On the contrary, the monthly high of 1.0973 can lure the EUR/USD bulls but the upside remains elusive unless crossing the 1.1000-05 resistance confluence, including the stated wedge’s top line and the February 01 peak.
Also acting as an upside filter is the Year-To-Date (YTD) high marked in February around 1.1035.
EUR/USD: Daily chart
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Trend: Pullback 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.
