Home EUR/USD Price Analysis: Holds gains above 1.2200 inside weekly trading range
FXStreet News

EUR/USD Price Analysis: Holds gains above 1.2200 inside weekly trading range

  • 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

Trend: Bullish

 

FX Street

FX Street

FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions.