Rebound needs validation from 1.1770

  • EUR/USD edges higher after bouncing off five-week-old support line.
  • Bullish MACD favors corrective pullback but multiple hurdles test the up-moves.
  • Bears need to conquer the 1.1700 threshold for further dominance.

EUR/USD struggles to extend the previous day’s rebound from a yearly low of around 1.1745 during early Thursday morning in Asia.

The currency major pair dropped to the lowest since March, also the year’s bottom, on Wednesday before bouncing off a downward sloping trend line from early July.

Although bullish MACD signals back the rebound, multiple horizontal resistances, as well as 100-SMA, challenge the pair buyers.

Among them, a three-week-long area surrounding 1.1750-55 becomes the immediate hurdle ahead of a bit longer horizontal region, from July 13, around 1.1770.

If the EUR/USD buyers manage to cross the 1.1770 resistance, 100-SMA level near 1.1810 should return to the chart.

Alternatively, pullback moves may retest 1.1725-20 before declining back to the stated support line close to the year’s low of around the 1.1700 round figure.

In a case where the EUR/USD bears keep reins past 1.1700, the late 2020 levels near 1.1600 will be in focus.

EUR/USD: Four-hour chart

Trend: Pullback expected


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