EUR/USD is pressing toward the upper side of its four-week range after repeated rejection near 1.1100. ActionForex says near-term momentum is positive, but bears still hold the larger timeframes.
EUR/USD attempts the upper side of its four-week range, following repeated downside rejection at the 1.1100 zone, which the 200-week moving average reinforces, according to ActionForex. The pair's near-term action remains constructive.
Fresh positive momentum supports the move. However, ActionForex says the pair needs a clear break above 1.1237/47 to generate an initial bullish signal. That range covers Monday's peak and the 23.6% Fibonacci level of the 1.1711/1.1104 descent.
The daily chart shows a slight bullish alignment, which keeps hopes of a stronger recovery in play. Even so, bears hold grip on larger timeframes and warn that the larger downtrend could resume once the current consolidation ends.
A firm break of the 1.1100/30 zone would signal continuation of the larger downtrend from 1.2082. That zone marks the 50% retracement of 1.0177/1.2082 and the 20-week moving average. Such a break would expose targets at 1.1000/1.0950.
ActionForex lists resistance at 1.1247, 1.1270, 1.1300 and 1.1336, and support at 1.1130, 1.1100, 1.1065 and 1.1000.
Source: ActionForex
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