EUR/USD Price Analysis: Picks up bids near 1.0550 inside weekly triangle
- 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
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.
