EUR/USD Price Analysis: Bulls attack key hurdle around 1.1850
- EUR/USD bulls take a breather at 11-week-old resistance line, near monthly top.
- Firmer RSI, sustained break of 50-DMA hints at further upside.
- A fortnight-long rising trend line adds to the downside filters.
EUR/USD pauses weekly rally around a one-month high surrounding the mid 1.1800s as Asian traders brush their screens for Thursday’s tasks.
The currency major pair justified a clear break of 50-DMA and firmer RSI conditions to refresh the highest levels since August 05 the previous day. However, a downward sloping trend line from June 25 challenges the quote’s immediate upside.
Given the successful break of the key moving average and RSI conditions, EUR/USD stays on the bull’s radar but further advances hinge on the upside break of the stated resistance line near 1.1845 by the press time.
Following that, July’s top close to 1.1910 can entertain the pair buyers before directing them to another challenging area near 1.1950, comprising 100-DMA and a descending trend line from May 25.
Alternatively, pullback moves remain less important until breaking down the 50-DMA level of 1.1805. Also acting as short-term downside support is a two-week-old upward sloping trend line near 1.1790.
Should the quote drop below 1.1790, three-week-long horizontal support near 1.1705 may offer an intermediate halt during the fall to the yearly low of 1.1664.
EUR/USD: Daily chart
Trend: Further upside expected