- EUR/USD remains on the front foot, carrying the early breakout of short-term descending trend line.
- Upbeat MACD, firmer RSI adds to the bullish bias but a convergence of 200-SMA, 100-SMA will be the key.
- Sellers will wait for downside break of 1.1200 for fresh entries.
EUR/USD grinds higher around the weekly top near 1.1270 following a three-day uptrend during the initial Asian session on Wednesday.
The major currency pair gained upside momentum after Monday’s upside break of a three-week-old descending resistance line, now support around 1.1205.
The bullish bias then gained support from MACD and RSI to flirt with the 38.2% Fibonacci retracement (Fibo.) level of January 14-28 downside.
It’s worth noting that the EUR/USD buyers aim for 50% Fibo. around 1.1300 as an immediate target during the further advances. However, a confluence of the 100-SMA and 200-SMA around 1.1315-20 will be a tough nut to crack for the pair bulls afterward.
Meanwhile, pullback moves remain elusive until staying beyond the resistance-turned-support and 23.6% Fibonacci retracement level near 1.1200.
Following that, the yearly low around 1.1120 and the 1.1100 threshold may lure EUR/USD bears ahead of the April 2020 peak surrounding 1.1020.
EUR/USD: Four-hour chart
Trend: Further upside expected