EUR/USD Price Analysis: Flirts with resistance-turned-support near 1.0350
- EUR/USD bounces off intraday low, justifies the strength of fortnight-long horizontal support.
- Bullish MACD signals, sustained break of previous key hurdle favor buyers.
- Three-week-old ascending trend line, 100-SMA adds to the downside filters.
EUR/USD picks up bids to pare intraday losses around 1.0665 after a negative start to the last trading day of 2022.
The major currency pair rose the most in two weeks the previous day and provided a daily closing beyond the fortnight-old horizontal hurdle, surrounding 1.0650. The upside momentum also took clues from the bullish MACD signals.
Hence, the EUR/USD pair’s latest pullback remains elusive unless breaking the aforementioned horizontal resistance-turned-support.
Even so, an ascending trend line from December 08, near 1.0615 by the press time, could restrict short-term EUR/USD downside.
It’s worth noting that the 100-SMA, close to 1.0600 at the latest, acts as the last defense of the EUR/USD bulls, a break of which won’t hesitate to direct the bears towards the 50% Fibonacci retracement level of the pair’s upside from late November to early December, near 1.0515.
Alternatively, the quote’s upside momentum will aim for the 1.0700 threshold before challenging the monthly peak surrounding 1.0735.
In a case where EUR/USD remains firmer past 1.0735, May’s peak of 1.0786 and the 1.0800 round figure may lure the pair buyers.
EUR/USD: Four-hour chart
Trend: Further recovery expected