EUR/USD Price Analysis: Prints bearish flag on 4H above 1.1900
- EUR/USD keeps weekly gains, mildly bid on the day.
- Recovery moves need to cross two-week-old resistance line to convince bulls.
- Early March lows add to the downside filters, 50-SMA strengthens bearish formation’s resistance.
EUR/USD eases from intraday top to 1.1930 amid a subdued Asian session on Thursday. Although the major currency pair is on the way to snap a three-week downtrend, it forms a bearish chart pattern on the four-hour (4H) play.
It should, however, be noted that bullish MACD signals restrict the quote from breaking the weekly ascending channel, forming part of the bearish flag pattern.
On the contrary, 50-SMA adds strength to the flag’s resistance, around 1.1990, which in turn keeps EUR/USD buyers baffled.
Also challenging the pair’s short-term upside could be the 1.2000 psychological magnet and a downward sloping trend line from June 09, near 1.2042.
Meanwhile, a clear break of 1.1915 will quickly attack the weekly bottom surrounding 1.1845 before rushing towards the theoretical target challenging the yearly low near the 1.1700 threshold.
On their way down, EUR/USD sellers may find the early March lows near 1.1835 and the 1.1800 as buffers.
EUR/USD four-hour chart
Trend: Recovery lacks momentum