EUR/USD retreats from intraday high inside a bullish chart pattern. Bullish MACD signals, higher lows marked since May 13 favor buyers. 50-HMA, the upper line of the wedge guard immediate advances, bears can aim for yearly low.
However, the intraday sentiment hints at the pair’s further weakness towards the 1.0400 threshold. Following that, the stated wedge’s support line, around 1.0355 and the yearly low of 1.0349, marked in May, will be important to watch for the bears.
In a case where the EUR/USD drops below 1.0349, the January 2017 bottom of 1.0340 could act as validation points for the further south-run. Alternatively, buyers need to provide a successful break of the 50-HMA and the wedge’s upper line, around 1.0445, to retake controls.
Even so, the 200-HMA level surrounding 1.0515 could act as an extra filter to the north before directing the north-run towards the late June swing high near 1.0615.