Technical Analysis: EURUSD bulls eye break of monthly ascending triangle ahead of Fed, stimulus news

Technical Analysis: EURUSD bulls eye break of monthly ascending triangle ahead of Fed, stimulus news

With the hopes of US coronavirus (COVID-19) stimulus getting stronger ahead of the key Federal Reserve meeting, EURUSD bulls attack a two-week-old horizontal resistance around 1.2175/80. While an ascending trend line from March, around 1.2320, is the ultimate target for the latest rally, the 1.2200 threshold can provide an intermediate halt during the north-run. It should also be noted that the overbought RSI conditions may trigger the pair’s pullback from the stated resistance line, if not then the April 2018 peak surrounding 1.2415 will be the key.

Meanwhile, the support line of the stated triangle, at 1.2145 now, restricts the short-term downside ahead of the 100-SMA level of 1.2050. In a case where the bears dominate past-1.2050, the 1.2000 psychological magnet and November 30 low near 1.1920 becomes important to watch for the EURUSD sellers. It should also be noted that the quote’s downside past-1.1920 can recall the 1.1900 round-figure before directing the bears to the 1.1800 level comprising November 23 low.

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