- EUR/USD remains on the front foot near the last month’s peak after five-day rally.
- Clear break of 10-week-old trend line, bullish MACD favor buyers.
- 50% Fibonacci retracement, 200-DMA will be tough nuts to crack for the bull.
- 50-DMA, 23.6% Fibo convergence acts as extra support.
EUR/USD stays firmer for the sixth consecutive day while rising to the fresh monthly high of 1.1878 during Friday’s Asian session.
The currency major pair crossed a downward sloping trend line from June 25 the previous day to rise to the highest levels last seen on August 04.
With the bullish MACD conditions joining the trend line breakout, EUR/USD prices are likely to remain firmer towards July’s peak of 1.1908.
However, the quote’s further upside will be challenged by the 50% Fibonacci retracement (Fibo) level of the May-August downside, around 1.1965, as well as the 200-DMA level of 1.2005.
Alternatively, pullback moves will aim for the resistance-turned-support retest, near 1.1845, a break of which will be challenged by a confluence of 50-DMA and 23.6% Fibo near 1.1805.
The 1.1800 round figure adds to the downside filters for the EUR/USD traders before August 11 swing lows near 1.1700 and the yearly bottom surrounding 1.1665.
EUR/USD: Daily chart
Trend: Further upside expected