Technical Analysis: 10-month-old resistance line probes EURUSD bulls near April 2018 top
EURUSD snaps three-day uptrend while reversing from the highest since April 2018 on early Thursday. The currency major bears the burden of overbought RSI conditions while nearing an upward sloping trend line from March. Not only the technical details but expected US dollar bounce on the back of likely stimulus from America, due to the Democratic victory, also triggers pullback hopes. However, an ascending trend line from November 04, at 1.2270 now, followed by December’s low of 1.2095, become the key support to watch during the quote’s U-turn. Should EURUSD sellers dominate past-1.2095, September high of 1.2010 and 100-day SMA near 1.1900 will grab the spotlight.
Meanwhile, an upside clearance of the stated resistance line, at 1.2370 now, will eye for April 2018 peak surrounding 1.2415. However, highs marked in early 2018 near 1.2475 and 1.2555 will be tough nuts to crack for the EURUSD bulls past-1.2415. To sum up, the markets have been one-sided for a long and hence a pullback is most likely. As a result, any minor news favoring the US dollar shouldn’t be ignored.