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Denis Sergienko • 2021-05-20

Technical Analysis: EURUSD bulls can ignore FOMC minutes-led pullback

Technical Analysis: EURUSD bulls can ignore FOMC minutes-led pullback

EURUSD bounces off a three-day low after the FOMC minutes unearthed Fed tapering chatters and portrayed the heaviest daily losses in a week the previous day. The currency major recovers toward the previous support line from late April, around 1.2205, amid bullish MACD. However, the pair’s upside past-1.2205 needs to cross the double top surrounding 1.2245-50 before targeting the yearly top near 1.2350.

Meanwhile, an ascending trend line from March 31, near 1.2100, becomes the key support to watch during the quote’s weakness below the latest low of 1.2159. Even if the bears manage to conquer the 1.2100 key support, 200-SMA around 1.2030 and the 1.2000 psychological magnet become tough nuts to crack for them. Hence, EURUSD bulls can stay optimistic unless the Fed speaks the tapering terms, which in turn could break crucial supports but is less likely for now.

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