Technical Analysis: EURUSD bulls attack 12-week-long hurdle of US Q4 GDP

Technical Analysis: EURUSD bulls attack 12-week-long hurdle of US Q4 GDP

Although reflation risk propels EURUSD near one-month high, the quote battles the key hurdle from early December 2020 that probed the bulls during late-January. Not only the key resistance but the cautious sentiment ahead of the preliminary readings of the US Q4 GDP, expected 4.1% versus 4.0% forecast, could also offer near-term direction to the quote. While disappointing data is likely to help the EURUSD to cross the 1.2175-90 resistance area, pullback moves will have difficulties as an ascending trend line from November 04 and 100-day SMA, respectively around 1.2025 and 1.2010, can challenge the bears.

On the contrary, successful trading above 1.2190 can eye the mid-December 2020 tops near 1.2272. Though, multiple hurdles around 1.2300 and 1.2310 could offer a bumpy road to the EURUSD bulls past-1.2272, a break of which could quickly cross the yearly top near 1.2350 towards the April 2018 peak surrounding 1.2415. To sum up, EURUSD bulls seem tiring near the key resistance and today’s data may offer the much-awaited trigger to the pullback moves. As a result, traders should remain cautious ahead of the stated growth figures.

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