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The EUR/USD is Grinding Higher Within a Falling Wedge, With 1.0940 As The Critical Resistance Level
After recovering from a five-week low, the EUR/USD retains a defensive stance. The bullish chart formation and optimistic oscillators favor Euro buyers to affirm the falling wedge and target the peak in March 2022. Nearly oversold RSI and multiple filters to the south encourage EUR/USD bears as key data and events approach.
EUR/USD receives offers to post modest gains near 1.0880 in the early hours of Tuesday as it defends the previous day's rebound from a multi-day low ahead of the most important European and American catalysts. In doing so, the Euro-U.S. dollar pair remains firmer within a two-week-old bullish falling wedge chart formation, recently rebounding off the pattern's lower line.
Nevertheless, the major currency pair rebounded from its lowest level in five weeks the day before, posting its first daily gain in four. Consequently, the EUR/USD displayed a two-week-long bullish falling wedge pattern as the oversold RSI (14) favored purchasers. The bullish MACD signals contribute to the strength of the recovery movements.
Consequently, the EUR/USD bulls are likely to maintain control, at least technically, as the pair approaches the key 1.0940 resistance confluence comprised of the top line of the aforementioned falling wedge and the 200-bar Exponential Moving Average (EMA).
Notably, the round number 1.0900 may function as an immediate resistance for Euro buyers to observe.
In the event that the EUR/USD remains stronger than 1.0940, the theory predicts a rise to a March 2022 high near 1.1185. Observe that the 1.1000 round number and the yearly high near 1.1090 could function as buffers during the pair's advance towards 1.1185.
Alternately, the lower line of the aforementioned wedge, which is near 1.0830, may join the nearly oversold RSI (14) line to limit the EUR/USD's short-term downside.
Afterwards, the mid-March swing high of 1.0760 will be scrutinized, a break of which could hand the EUR/USD bears control.
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