EUR/USD Price Analysis: Retreats from five-week-old resistance towards 0.9820 EMA support
- EUR/USD struggles to extend two-day uptrend, renews intraday low of late.
- Bullish MACD signal, successful break of 21-day EMA suggests further advances.
- 50-day EMA, descending trend line from August adds to the upside filters.
- Three-week-old horizontal support appears important for the bears to watch.
EUR/USD snaps a two-day uptrend as it takes a U-turn from the short-term key resistance line to refresh the intraday low near 0.9850 during Wednesday’s Asian session.
Even so, the major currency pair’s successful upside break of the 21-day EMA and the bullish MACD signals keep the buyers hopeful of overcoming the 0.9875 resistance level comprising a downward-sloping trend line from September 13.
However, the 50-day EMA level of 0.9925 and a two-week-old descending trend line, at the parity level by the press time, will be tough challenges for the EUR/USD bulls to cross before aiming the previous monthly top near 1.0200.
Also acting as an upside filter is the 61.8% Fibonacci retracement level of the pair’s August-September moves, near 1.0050.
Meanwhile, pullback moves could initially aim for the 21-day EMA level surrounding 0.9820 before directing the EUR/USD bears toward the 23.6% Fibonacci retracement level of 0.9730.
Following that, a horizontal area including multiple levels marked since September 23, near 0.9675-80, will be crucial to watch for the bears.
EUR/USD: Daily chart
Trend: Limited downside expected