EUR/USD Price Analysis: Corrective pullback eyes weekly resistance above 1.1200

• EUR/USD takes the bids to refresh intraday high, bounce off 16-month low.
• Bullish MACD signals, firmer Momentum line favor rebound.
• 100-SMA, one-week-old horizontal line add to the upside filters.

EUR/USD consolidates recent losses around multi-month low, picking up bids to refresh daily top to 1.1211 during early Thursday.

The major currency pair dropped to the fresh low since July 2020 the previous day before bouncing off the 1.1186 level.

The recovery moves gain support from the bullish MACD signals and upward sloping Momentum line to direct buyers towards a one-week-long descending trend line near 1.1220.

However, a convergence of the 100-SMA and a weekly horizontal resistance, previous support, challenges the EUR/USD pair’s further advances around 1.1235.

Should the quote manage to cross the 1.1235 hurdle, the weekly high of 1.1290 will be in focus.

On the flip side, EUR/USD bears will take fresh entries on witnessing a clear downside break of the 1.1200 threshold but lows marked during July 2020, as well as recently, highlight 1.1185 as the key support.

Even if the pair drops below 1.1185, June 2020 swing low will challenge the further declines around 1.1168.

EUR/USD: 30-minute chart

Trend: Further recovery expected