EUR/USD Price Analysis: Retreats from monthly top near 1.1450 but bulls stay hopeful
- EUR/USD consolidates the biggest daily gains in five weeks around one-month high.
- Clear break of descending trend line from May, bullish MACD signals favor buyers.
- 100-DMA lures bulls ahead of the three-month-old horizontal hurdle.
- 21-DMA, ascending trend line from late November add to the downside filters.
EUR/USD remains lackluster around monthly high, recently easing to 1.1440 amid Thursday’s Asian session.
The major currency pair jumped the most since early December the previous day on breaking a descending trend line from May. The resistance breakout also gained support from the bullish MACD signals to refresh monthly high.
That said, the 23.6% Fibonacci retracement (Fibo.) of the pair’s May-November declines seem to restrict the quote’s immediate moves around 1.1450.
However, the sellers are less likely to retake entries until the pair remains above the previous resistance line, around 1.1410.
Even so, 21-DMA and a seven-week-old ascending support line, respectively around 1.1330 and 1.1290, will challenge the EUR/USD bears.
On the contrary, the 100-DMA level of 1.1510 stays on the bull’s radar ahead of targeting the 1.1530 horizontal line established in October.
Should the EUR/USD buyers cross the 1.1530 hurdle, further upside towards August month’s low near 1.1665 can’t be ruled out.
EUR/USD: Daily chart
Trend: Further upside 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.
