- EUR / USD edged down following a pullback from the one-week high.
- Two-month rising support line probes sellers, 50-day SMA ready to break through 100-DMA.
- The weekly resistance line holds the key to the annual high.
EUR / USD remains out of the way around 1.2215 during the early hours of Wednesday’s Asian session. The major currency pair fell the most in a week after falling 1.2254 the day before.
However, an impending cross from the 50-day SMA (DMA) to 100-DMA, coupled with a strong support line from March 31, suggests that the pair’s rally is heading towards the weekly resistance line.
It is worth mentioning that a sharp rise beyond the indicated hurdle around 1.2250 will help EUR / USD buyers tackle the annual high around 1.2350. During momentum, the threshold of 1.2300 may offer an intermediate stop.
Alternatively, a clear bearish break out of the indicated support line, near 1.2200, will have several supports around 1.21470 before testing the April high near 1.2150.
In the event that the EUR / USD sell off below 1.2150, mid-May lows near 1.2050, followed by major SMAs around 1.2040-35, will test the drops.
Overall, EUR / USD remains in the spotlight despite recent pullbacks.
EUR / USD daily chart