Technical Analysis: EURUSD teases short-term rising wedge confirmation on 4H
Following its failure to confirm a three-week-old rising wedge bearish chart pattern on the four-hour (4H) play, EURUSD again eyes the 1.1990–1.2000 horizontal resistance area established since early March. Given the strong MACD and upbeat RSI conditions, not to forget the pair’s sustained trading beyond 200-SMA, EURUSD is likely to overcome the stated immediate upside hurdle around 1.2000. However, the following run-up will be bumpy as 61.8% Fibonacci retracement and the previous month’s top, respectively around 1.2035 and 1.2115, will challenge the bulls.
Meanwhile, a clear downside break of 1.1955 will need to conquer the 200-SMA level of 1.1885 before recalling the EURUSD sellers. Following that, March 09 trough surrounding 1.1835 and 1.1790 may entertain the bears. However, any further weakness might not hesitate to challenge March’s low of 1.1700. Overall, the US dollar is likely to recover amid chatters over President Joe Biden’s infrastructure spending plan and covid resurgence in Europe and Asia.