EUR/USD Price Analysis: Rebounds inside bearish triangle, looks to regain 1.0600
- EUR/USD keeps late Monday’s pullback from a 12-day top despite recent recovery.
- Firmer RSI, three-day-old support defend buyers inside a bearish chart formation.
- 50-SMA adds to the downside filters before directing bears to the monthly low, 200-SMA guards short-term rebound.
EUR/USD picks up bids to rebound from the intraday lows surrounding 1.0570 to pare daily losses, the first in three days, during Tuesday’s Asian session. That said, the quote rises to 1.585 by the press time.
Although a three-day-old support line triggered the EUR/USD pair’s rebound, it stays inside a two-week-long ascending triangle bearish chart pattern.
It’s worth noting that the recently firmer RSI line and the rebound from a short-term support line direct EUR/USD towards battling with the 200-SMA resistance of 1.0590.
However, the aforementioned triangle’s resistance line, neat 1.0610, could challenge the EUR/USD pair’s further upside.
In a case where the quote rises past 1.0610, it becomes capable of challenging the monthly high near 1.0775.
On the flip side, a break of the immediate support line, near 1.0570 at the latest, won’t convince the EUR/USD bears as the triangle’s lower line and the 50-SMA act as additional downside filters to challenge the downside momentum around 1.0540 and 1.0530 respectively.
Should the quote drop below 1.530, the monthly low of near 1.0360 will gain the seller’s attention.
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.
