- EUR/USD flirting with daily highs near 1.2200.
- Further upside will open up on a firm break above 50-HMA.
- Hourly RSI stays bullish, allowing for more gains.
EUR/USD is battling a powerful resistance located near the 1.2200 level, having found strong bids just above 1.2150.
The rebound in the spot can be mainly attributed to the optimism fuelled by the hopes for an imminent Brexit deal, which has dented the US dollar’s haven demand.
The greenback has shrugged off the latest threat by the US President Donald Trump to the $900 billion covid relief stimulus bill.
Looking at the hourly chart, the price needs a sustained move above the horizontal 50-hourly moving average (HMA) at 1.2203 to unleash additional upside.
The next relevant barrier awaits at 1.2220, which is the horizontal 100-HMA. Further, the buyers will eye a test of the psychological level at 1.2250.
On the flip side, the 200-HMA at 1.2186 guards the immediate downside. A breach of the latter could expose the 21-HMA at 1.2180.
A sharp drop could be triggered if the bulls fail to resist the 21-HMA cushioning, opening floors for a test of the rising trendline support at 1.2160
EUR/USD: Hourly chart
EUR/USD: Additional levels
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