- A successful break of support-turned-resistance becomes necessary to validate the latest recovery.
- 1.1250 and 100-SMA act as follow-on resistances whereas 1.1180 can please immediate sellers.
Even after witnessing pullbacks, EUR/USD buyers await a sustained break of previous support-confluence (now resistance) while the quote is on the bids near 1.1224 during early Monday.
Not only 21 and 50-day simple moving averages (SMAs) but 23.6% Fibonacci retracement of January – May downturn also highlights the importance of 1.1220/25 area, a successful rise above the same can trigger the pair’s fresh upside to 1.1250 and then to 100-day SMA level of 1.1270.
While 1.1300 and current month high around 1.1350 might question bulls past-1.1270, an extended north-run beyond 1.1350 might not refrain from challenging 61.8% Fibonacci retracement level of 1.1402.
On the downside, 1.1200 and 1.1180 may entertain sellers during the pullback.
Additionally, 1.1145 and 1.1107 can flash on the chart should prices slip beneath 1.1180.
EUR/USD daily chart
Trend: Bearish