EUR/USD Price Analysis: Keeps bounce off 100-HMA towards monthly resistance
- EUR/USD holds onto last week’s recovery moves from multi-day low.
- MACD teases bulls, sustained trading beyond the key HMA signal further upside.
- One-week-old horizontal line adds to the downside supports.
EUR/USD stays on the recovery mode, picks up bids to 1.1865, amid the initial Asian session on Tuesday. The major currency pair stepped back from a one-week high the previous day before bouncing off 100-HMA. In doing so, the corrective pullback extends the last week’s recovery moves from the lowest since early April.
Given the MACD line teasing a crossover of the signal indicator, coupled with the pair’s successful U-turn from the key HMA, EUR/USD is up for challenging a downward sloping trend line resistance line from June 30, near 1.1880.
However, the quote’s further upside will depend upon how well the bulls can cross the 1.1900 threshold, a clear break of which could again direct the pair buyers toward the 1.16985-90 horizontal hurdle, comprising early March tops and May’s lows.
Alternatively, a downside break of 100-HMA, around 1.1835, may find multiple supports around 1.1825 before testing a short-term horizontal line close to the 1.1800 round figure.
It should, however, be noted that the quote’s weakness past 1.1800 will be tested by the monthly low near 1.1780 prior to directing EUR/USD bears to the yearly low surrounding 1.1700.
EUR/USD: Hourly chart
Trend: Further recovery 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.
