EUR/USD Price Analysis: Rebound needs validation from 1.1770
- EUR/USD edges higher after bouncing off five-week-old support line.
- Bullish MACD favors corrective pullback but multiple hurdles test the up-moves.
- Bears need to conquer the 1.1700 threshold for further dominance.
EUR/USD struggles to extend the previous day’s rebound from a yearly low of around 1.1745 during early Thursday morning in Asia.
The currency major pair dropped to the lowest since March, also the year’s bottom, on Wednesday before bouncing off a downward sloping trend line from early July.
Although bullish MACD signals back the rebound, multiple horizontal resistances, as well as 100-SMA, challenge the pair buyers.
Among them, a three-week-long area surrounding 1.1750-55 becomes the immediate hurdle ahead of a bit longer horizontal region, from July 13, around 1.1770.
If the EUR/USD buyers manage to cross the 1.1770 resistance, 100-SMA level near 1.1810 should return to the chart.
Alternatively, pullback moves may retest 1.1725-20 before declining back to the stated support line close to the year’s low of around the 1.1700 round figure.
In a case where the EUR/USD bears keep reins past 1.1700, the late 2020 levels near 1.1600 will be in focus.
EUR/USD: Four-hour chart
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.
