- EUR/USD holds onto previous day’s recovery moves amid bullish MACD.
- 1.2245-50 guards immediate run-up inside short-term rising wedge.
- Bears may not risk entries beyond 100-day SMA.
EUR/USD remains on the front foot around 1.2230 during the early Friday morning in Asia. The currency major pair bounced off the short-term key support area the previous day and is all set to confront the horizontal line comprising February-May peaks.
While the bullish MACD and sustained recovery from early month tops enable EUR/USD to cross the 1.2245 immediate hurdle, the resistance line of a two-month-old rising wedge bearish formation, around 1.2265-70, will test the pair’s further upside.
Additionally, tops marked during 2020-2021 conjunction, comprising a few last days of 2020 and initial 2021, near 1.2310, adds to the upside barriers before propelling the quote to the yearly peak surrounding 1.2350.
Alternatively, pullback moves below 1.2165 nearby horizontal support could drag the quote to the support line of the stated rising wedge near 1.2115, a breaking which 100-day SMA level of 1.2042 will be in focus.
Overall, EUR/USD remains on the uptrend but multiple hurdles offering a bumpy ride before the yearly top.
EUR/USD daily chart
Trend: Bullish
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