The EUR/USD rose further during the American session and printed a fresh four week high at 1.1170. The pair is rising for the second day in a row, headed toward the highest close in a month.

A weaker US dollar is keeping the bullish tone of EUR/USD intact. Technical factors contribute to supporting the upside. The pair is holding well above 1.1100 and it has also broken the 1.1135 resistance area.

the recovery now targets the temporary resistance at the 55-day SMA, today at 1.1201 ahead of the 1.1250 region, where the 100-day SMA and the 8-month line coincide.

The medium-term negative outlook for EUR/USD is expected to remain unchanged while below the key 200-day SMA, today at 1.1492.

the instrument is moving above Ichimoku Cloud, thus indicating an ascending tendency. The markets could indicate that the price may test Tenkan-Sen and Kijun-Sen at 1.1045 and then resume moving upwards to reach 1.1275. Another signal in favour of a further uptrend will be a rebound from the rising channel’s downside border. However, the bullish scenario may no longer be valid if the price breaks the cloud’s downside border and fixes below 1.0950. In this case, the pair may continue falling towards 1.0865.

EURUSD is in new recovery mode in the 4-hour chart, but notice that the wave structure still looks corrective, so we are still tracking a bigger A-B-C corrective rally that can retest 1.12xx resistance area before we will potentially see another decline. Keep in mind that bears may step in only if turns back sharply beneath 1.0940 region. On the other hand, in case if goes impulsively towards 1.13 area, then it may have already found the support.

EURUSD Bullish Above the Trend Line

Mar 30 2022