EUR/USD Price Analysis: Struggles above 1.2050 inside rising wedge
- EUR/USD edges lower inside a bearish chart pattern.
- MACD also teases sellers but key EMAs add to downside filters.
- Bulls have a bumpy road to recovery, 1.2200 becomes crucial resistance.
EUR/USD fades the previous day’s bounce off 1.2060-55 support confluence while easing to 1.2078 amid early Friday’s Asian session. In doing so, the quote nears the support line of a two-month-old rising wedge bearish formation, also joined by the 21-day EMA.
It should, however, be noted that the MACD teases bears to break the nearly 1.2060-55 convergence but the 50-day EMA surrounding 1.2015, followed by the 1.2000 threshold could challenges the EUR/USD bears afterward.
In a case where sellers dominate past-1.2000, odds of the pair’s drop to the yearly low of 1.1700 can’t be ruled out. Though, 1.1850-45 can offer an intermediate halt during the fall.
Meanwhile, corrective pullback needs to cross the 1.2100 nearby hurdles before eyeing the multiple resistance area near 1.2200, not to forget the wedge’s upper line near 1.2210.
If at all EUR/USD bulls manage to cross the 1.2210 hurdle, February’s peak near 1.2245 can act as a buffer before pushing the pair towards the yearly top of 1.2350.
EUR/USD daily 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.
