- 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
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD pressured as Fed officials hold firm on rate policy
The Australian Dollar is on the defensive against the US Dollar, as Friday’s Asian session commences. On Thursday, the antipodean clocked losses of 0.21% against its counterpart, driven by Fed officials emphasizing they’re in no rush to ease policy. The AUD/USD trades around 0.6419.
EUR/USD extends its downside below 1.0650 on hawkish Fed remarks
The EUR/USD extends its downside around 1.0640 after retreating from weekly peaks of 1.0690 on Friday during the early Asian session. The hawkish comments from Federal Reserve officials provide some support to the US Dollar.
Gold price edges higher on risk-off mood hawkish Fed signals
Gold prices advanced late in the North American session on Thursday, underpinned by heightened geopolitical risks involving Iran and Israel. Federal Reserve officials delivered hawkish messages, triggering a jump in US Treasury yields, which boosted the Greenback.
Dogwifhat price pumps 5% ahead of possible Coinbase effect
Dogwifhat price recorded an uptick on Thursday, going as far as to outperform its peers in the meme coins space. Second only to Bonk Inu, WIF token’s show of strength was not just influenced by Bitcoin price reclaiming above $63,000.
Billowing clouds of apprehension
Thursday marked the fifth consecutive session of decline for US stocks as optimism regarding multiple interest rate cuts by the Federal Reserve waned. The downturn in sentiment can be attributed to robust economic data releases, prompting traders to adjust their expectations for multiple rate cuts this year.