The Euro kicked off the new week on a positive note, appreciating against most G10 currencies.
As US Treasury yields fell slightly and weighed on the Dollar, this pushed the EURUSD to an intraday high of 1.2168 before prices later retreated below the 1.2150 level.
Looking at the daily timeframe, the EURUSD is certainly in an uptrend. There have been consistently higher highs and higher lows since the start of April 2021 with prices respecting a bullish channel.
However, bulls seem to be having a tough time cracking the resistance around the 1.2150 – 1.2170 regions.
After peaking around 1.2180 last week, the currency pair tumbled as low as 1.2050 which became the new higher low. Should prices fail to secure a solid daily close above 1.2170, the EURUSD may experience a pullback towards 1.2050 and 1.2000, respectively.
Alternatively, a solid breakout above 1.2170 could signal an incline towards levels not seen since late February above 1.2240. Lagging indicators are currently swinging in favour of bulls with the MACD trading above the zero level while the 50-day Simple Moving Average (SMA) is back above the 200-day SMA.
Zooming out to the weekly charts, bulls still remain in the driving seat above 1.2050. A solid weekly close above 1.2170 should pave a path towards 1.2240 and 1.2310. If bulls fail to conquer 1.2170, prices could decline back towards 1.2050 and 1.1985, respectively.
Prices are still stuck within a very wide range on the monthly timeframe with support found around 1.1600 and resistance at 1.2300. If bulls can maintain control and secure a monthly close above 1.2300, this may open doors towards 1.2400 – a level not seen since April 2018.
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