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Friday, September 30, 2022
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Marches towards 1.0200 inside falling wedge

  • EUR/USD picks up bids to refresh intraday high during three-day uptrend.
  • Successful break of 50-SMA, bullish MACD signals keep buyers hopeful.
  • Upside clearance of 1.0200 becomes necessary to confirm the bullish chart pattern.
  • 50-DMA, weekly support line restricts immediate downside moves.

EUR/USD refreshes intraday high around 1.0150 as bulls portray the three-day uptrend amid the initial European session on Tuesday.

The major currency pair rose to the highest levels in a month the previous day before reversing from the resistance line of a nearly two-month-long falling wedge bullish chart pattern. The pullback moves, however, remained above the 50-DMA and kept the buyers hopeful.

Also favoring the upside momentum are the bullish MACD signals and the firmer RSI (14), not overbought.

It should, however, be noted that the clear upside break of the 1.0200 threshold becomes important for the EUR/USD bulls as it will confirm the theoretical transition towards the 1.0950 hurdle.

During the run-up, the tops marked during August and June, respectively near 1.0370 and 1.0615, could test the upside momentum, in addition to the 100-DMA hurdle surrounding 1.0335.

Meanwhile, pullback moves may initially aim for the 50-DMA support near 1.0115, a break of which could direct EUR/USD bears towards a one-week-old support line, close to 1.0085 by the press time.

Following that, the yearly low near 0.9865 and the lower line of the stated wedge, close to 0.9860, should gain the market’s attention.

EUR/USD: Daily chart

Trend: Further upside expected

 

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