EUR/USD Price Analysis: Recovery from 50-DMA has bumpy road ahead

EUR/USD attacks upper end of immediate trading range following Monday’s corrective bounce.
Previous resistance line, bearish MACD signals test the recovery moves.
Three-week-old resistance line adds to the upside filters.

Anil Panchal FXStreet

EUR/USD seesaws in a 10-pips trading range surrounding 1.2120 amid Tuesday’s subdued Asian session. In doing so, the currency major pair struggles to extend the previous day’s recovery moves while keeping the last week’s breakdown of the key support lines, now resistance, amid bearish MACD.

Hence, the corrective pullback needs to cross the nearby resistance lines around 1.2125 and 1.2140 to stay in the recovery mode and aim for the 1.2200 threshold.

However, a downward sloping trend line from May 25, around 1.2205, could challenge the EUR/USD run-up afterward.

Meanwhile, bearish MACD and sustained trading below previous supports keep sellers hopeful to revisit the 50-day SMA (DMA) level of 1.2100, not to forget the monthly bottom near 1.2090.

During the quote’s further weakness past 1.2090, May 13 low of 1.2051 and the 1.2000 round figure, quickly followed by May’s bottom close to 1.1985, will be the key levels to watch.

Overall, EUR/USD needs to cross immediate hurdles to defy the bearish bias.

EUR/USD daily chart

Trend: Pullback expected

Additional important levels

Overview
Today last price	1.2121
Today Daily Change	0.0013
Today Daily Change %	0.11%
Today daily open	1.2108

Trends
Daily SMA20	1.2187
Daily SMA50	1.2082
Daily SMA100	1.2043
Daily SMA200	1.1991

Levels
Previous Daily High	1.2193
Previous Daily Low	1.2093
Previous Weekly High	1.2218
Previous Weekly Low	1.2093
Previous Monthly High	1.2266
Previous Monthly Low	1.1986
Daily Fibonacci 38.2%	1.2131
Daily Fibonacci 61.8%	1.2155
Daily Pivot Point S1	1.2069
Daily Pivot Point S2	1.2031
Daily Pivot Point S3	1.1969
Daily Pivot Point R1	1.217
Daily Pivot Point R2	1.2232
Daily Pivot Point R3	1.227

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.

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