- EUR/USD picks up bids inside a fortnight-old trading range, weekly symmetrical triangle.
- Clear break of three-week-old descending trend line, firmer RSI adds strength to the recovery moves.
- 100-SMA offers an extra challenge to buyers before giving them control.
EUR/USD extends the early Asian session rebound towards poking the 1.0550 mark as European traders brace for Wednesday’s bell.
The major currency pair’s latest recovery could be linked to the U-turn from the previous resistance line stretched from April 21. Also keeping buyers hopeful is the recently firmer RSI (14) line.
It should be noted, however, that a one-week-long symmetrical triangle restricts short-term EUR/USD moves between 1.0565 and 1.0520.
Hence, the latest upside momentum eyes the triangle’s resistance line, namely around 1.0565, a break of which could direct buyers towards the 100-SMA level, near 1.0630 at the latest.
Even if the quote rises past 1.0630, the current month high around 1.0640-45 will act as an additional filter to the north before confirming the advances targeting the 1.0700 region.
On the contrary, a downside of the stated triangle’s support, around 1.0520, will be challenged by the resistance-turned-support line, close to 1.0515 at the latest.
Should the quote drop below 1.0515, the 1.0500 and April’s low near 1.0470 will lure the EUR/USD bears.
EUR/USD: Four-hour chart
Trend: Further recovery expected
Additional important levels
|Today last price||1.0545|
|Today Daily Change||0.0017|
|Today Daily Change %||0.16%|
|Today daily open||1.0528|
|Previous Daily High||1.0586|
|Previous Daily Low||1.0526|
|Previous Weekly High||1.0642|
|Previous Weekly Low||1.0483|
|Previous Monthly High||1.1076|
|Previous Monthly Low||1.0471|
|Daily Fibonacci 38.2%||1.0548|
|Daily Fibonacci 61.8%||1.0563|
|Daily Pivot Point S1||1.0507|
|Daily Pivot Point S2||1.0486|
|Daily Pivot Point S3||1.0447|
|Daily Pivot Point R1||1.0567|
|Daily Pivot Point R2||1.0606|
|Daily Pivot Point R3||1.0627|
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