June 7, 2023

Bulls need validation from 1.1385

  • EUR/USD battles short-term key hurdle to the north, sidelined of late.
  • 50-DMA, seven-week-old horizontal resistance guard immediate upside.
  • Bullish MACD signals, successful trading above 21-DMA keeps buyers hopeful.
  • Four-month-old descending trend line acts as extra resistance.

EUR/USD bulls attack crucial resistance around 1.1385, poking the highest level since mid-November, during the early Asian session on Monday. That said, the quote flashes 1.1375 level by the press time.

In doing so, the major currency pair battles the 50-DMA and a horizontal area comprising multiple resistances since mid-November.

Given the bullish MACD signals and the pair’s successful run-up beyond 21-DMA, EUR/USD buyers are likely to overcome the immediate hurdle.

However, a downward sloping trend line from early September, around 1.1440 by the press time, will be critical to watch for the bulls afterward, a break of which will direct the run-up towards October’s low and 100-DMA, respectively near 1.1525 and 1.1540.

On the contrary, pullback moves may aim for a 21-DMA retest, close to 1.1310 at the latest, before challenging an ascending support line from late November around 1.1250.

Should EUR/USD prices break the 1.1250 support, the bears will have a rush towards the year 2021 low near 1.1185.

EUR/USD: Daily chart

Trend: Further upside expected


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