- EUR/USD stays firmer, attacks the short-term range’s resistance line.
- Bullish Momentum line, sustained trading beyond three-week-old support line favor buyers.
- Multiple hurdles around 1.2240-45 offer a bumpy road to the north.
EUR/USD takes round to 1.2220 amid the initial Asian session trading on Tuesday. In doing so, the currency major keeps Friday’s recovery moves inside a one-week-long rectangle.
Given the quote’s successful bounce off 1.2160 support, coupled with clear trading beyond the short-term rising trend line, favor the pair bulls amid an upbeat Momentum line.
However, tops marked in the last three months, around 1.2240-45 will tame the pair’s immediate upside.
Even if the EUR/USD bulls manage to cross 1.2245, the mid-December 2020 peak near 1.2270-75 and a 2020-end high of 1.2310 could test the run-up before challenging the yearly top surrounding 1.2350.
Alternatively, pullback moves can entertain short-term traders with the 1.2200 threshold and the early May highs near 1.2185. However, EUR/USD sellers will be cautious if the quote drops below the rectangle support of 1.2160.
Also acting as crucial support is the short-term rising trend line near 1.2130.
Overall, EUR/USD remains on the front foot but bulls need a strong push to the north to move forward.
EUR/USD four-hour chart