- June 10, 2021
- Posted by: Analysis Team
- Category: Forex News
- EUR/USD grinds lower after a pullback from the weekly top.
- Momentum indicator suggests firming of bullish bias, 1.2080 becomes the key support.
EUR/USD stays pressured around 1.2180-75 amid the early Asian session on Thursday. The pair refreshed weekly top the previous day before reversing from 1.2218. The pullback prints a bullish flag pattern the daily (1D) play.
Given the gradual recovery of the Momentum line inside the positive territory, buyers remain hopeful.
However, February’s top near 1.2245 and previous support line from March 31 close to 1.2280 could probe EUR/USD uptrend even if the quote crosses the flag’s resistance line, close to 1.2210.
Alternatively, the pair’s further weakness will have a tough time breaking the 1.2085-80 support confluence, including 50-day SMA (DMA) and the stated flag’s lower line.
Also acting as strong downside support is the three-month-old horizontal area surrounding 1.1985-90.
Fundamentally, ECB should reiterate an upbeat economic outlook and the US CPI need not cross the forecast to back the EUR/USD buyers.
EUR/USD DAILY CHART