EUR/USD Price Analysis: Bulls seem tired around mid-1.2100s
- EUR/USD trades indecisive after refreshing one-week high the previous day.
- Monday’s Doji, downbeat Momentum line favor sellers targeting 1.2085-80 support confluence.
- Four-month-old horizontal resistance acts as the key upside barrier.
EUR/USD fades late Monday’s recovery moves while taking rounds to 1.2150 amid the initial Asian session on Tuesday. In doing so, the quote remains inside the 110-pip trading range but a Doji candlestick and downward sloping Momentum line favor sellers.
It should, however, be noted that the major currency pair needs to stay below 1.2170 to justify the bearish formation. Though, a run-up beyond the 1.2170 hurdle will have a limited upside as multiple resistances since late January stand tall to test the EUR/USD bulls around 1.2180-90.
Even if the EUR/USD prices rally beyond 1.2190, the 1.2200 and February’s high near 1.2245 will be the key to watch.
Meanwhile, the 1.2100 threshold can entertain short-term sellers ahead of challenging the EUR/USD bears with a 1.2085-80 support confluence comprising 21-day SMA and an ascending support line from March 31.
Should the quote drops below 1.2080, the 1.2000 round-figure may stop further downside, if not then the monthly low near 1.1985 can act as an extra downside filter.
EUR/USD daily chart
Trend: Pullback expected