- Short-term falling channel’s resistance-line will challenge the EUR/USD pair’s latest recovery.
- A descending trend-line since August-start adds to the channel’s support.
The EUR/USD pair’s pullback from immediate falling channel might find it hard to sustain for long as it trades near 1.0940 during Monday’s Asian session.
The quote recently bounced off the support-line of a falling channel since September 18, which together with the bullish signal generated by the 12-bar moving average convergence and divergence (MACD) indicate pair’s further recovery to channel’s resistance line at 1.0967.
While pair’s upside past-1.0967 carries fewer chances, the same could escalate the run-up to last week’s high near 1.1025. Though, a downward sloping trend-line since August 26, at 1.1070 now, could restrict further advances.
Alternatively, 1.0900 and channel’s support near 1.0880 could keep the sellers happy, a break of which could drag the quote to near-term falling trend-line to 1.0840.
EUR/USD 4-hour chart
Trend: bearish
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