EUR/USD Price Analysis: Keeps bounce off eight-month-old support around 1.1850
- EUR/USD steadies after snapping three-day downtrend, bouncing off three-month low.
- MACD conditions back the corrective pullback but two-week-old hurdle tests bulls.
- Sellers remain hopeful below 200-DMA, 1.1785 becomes the key support.
EUR/USD seesaws around 1.1850, consolidating the strongest daily gains in three weeks, amid the initial Asian session trading on Friday. Even so, the currency major pair keeps the previous day’s bounce off an ascending support line from early November 2020.
Also favoring the bulls could be the MACD line’s leaning over the signal indicators, suggesting a bullish cross and recovery in prices.
However, a descending trend line from June 25 guards immediate upside around 1.1865 ahead of the 1.1900 threshold.
It’s worth noting that a clear upside past 1.1900 enables the EUR/USD buyers to aim for late June top near 1.1975 but 200-DMA level near 1.2010 will challenge any further advances.
Alternatively, pullback moves will battle the said support line around 1.1785, a daily closing below the same won’t hesitate to challenge the yearly low of 1.1704.
Overall, EUR/USD is up for consolidating recent losses but the bulls await clear signals.
EUR/USD: Daily 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.
