EUR/USD Price Analysis: Bulls take a breather below 1.1120 key hurdle
- EUR/USD retreats from a two-week top, pauses four-day winning streak.
- Bullish MACD, firmer RSI keep buyers hopeful to overcome immediate resistance.
- 50-DMA adds to the upside filters, short-term support line restricts bear’s entry.
EUR/USD dribbles around 1.1090-95 during a sluggish early Asian session on Friday, after rising for the last four days to poke the highest levels since March 02.
The major currency pair’s latest moves are challenged by the 21-DMA level of 1.1100. However, major attention is given to the horizontal line comprising multiple levels marked since late January and a five-week-old descending resistance line, around 1.1120.
Given the firmer MACD and ascending RSI line, not overbought, EUR/USD prices are likely to cross the aforementioned key hurdles.
Following that, the pair buyers may aim for the 50-DMA level of 1.1241 before the mid-February lows near 1.1280 challenge the further upside.
On the flip side, the EUR/USD pair’s fresh downside may initially aim for the 1.1000 threshold before challenging an upward sloping support line from March 07, close to 1.0985 at the latest.
It should be noted, however, that a daily closing below 1.0985 will allow EUR/USD prices to revisit the 1.0900 round figure ahead of directing the bears towards the multi-month low marked earlier March near 1.0800.
EUR/USD: Daily chart
Trend: Further recovery 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.
