Technical Analysis: EURUSD rebounds ahead of ECB, key covid vaccine announcement

Technical Analysis: EURUSD rebounds ahead of ECB, key covid vaccine announcement

EURUSD bounces off 50-SMA in a run-up to the key ECB monetary policy meeting on early Thursday. The pair also recovers ahead of the US FDA approval of Pfizer's covid vaccine, scheduled for late-Thursday. Although receding MACD signals may challenge the pair bulls, RSI strength and a clear U-turn from short-term key SMA favor the pair's upside to the monthly top near 1.2180. If at all the EURUSD buyers cross the 1.2180 upside barrier, an ascending trend line from March 2020, at 1.2300 now, will be in the spotlight.

In a case where the quote drops below the 50-SMA level of 1.2085, the previous resistance line from November 09, at 1.2045 now, will be the key. While RSI conditions may challenge further weakness downside 1.2045, additional weakness will not refrain from challenging the 1.2000 psychological magnet and a five-week-old support line near 1.1970.

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