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Denis Sergienko • 2022-03-18

EURUSD bulls are at test inside fortnight-old triangle

EURUSD bulls are at test inside fortnight-old triangle

EURUSD braces for the first positive week in six, despite recently drop back to a two-week-long symmetrical triangle during early Friday. Given the bullish MACD signals and firmer RSI, the major currency pair is up for crossing the aforementioned triangle’s resistance line, near 1.1105. Even so, the 200-SMA and a seven-week-old horizontal area, respectively around 1.1200 and 1.1265-75, become tough nuts to crack for the bulls.

Alternatively, pullback moves remain elusive beyond the 1.0960 level comprising the lower line of the aforementioned triangle and 23.6% Fibonacci retracement of February-March downside. Following that, the 1.0900 and the monthly bottom surrounding 1.0800 will challenge the EURUSD bears. It’s worth noting that the pair’s downside past 1.0800 will make it vulnerable to test the 61.8% Fibonacci Expansion (FE) of January-March moves, close to 1.0700.

To sum up, EURUSD prices do gain upside momentum of late but the bulls have a long road to travel before taking control.

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