EUR/USD Price Analysis: Bulls battle with 200-SMA on the way to 1.1385

• EUR/USD holds onto biggest daily gains in a week around monthly high.
• Clear break of seven-week-old falling trend line, bullish MACD signals favor buyers.
• One-month-old horizontal area challenges further upside, ascending trend line from late November restricts short-term declines.

Although 200-SMA probe EUR/USD bulls around a monthly peak, a clear break of the short-term key resistance line, now support, joins bullish MACD signals to favor the further upside. That said, the major currency pair trades around 1.330 during early Friday morning in Asia.

In addition to the 200-SMA hurdle around 1.1360, a horizontal region comprising multiple tops marked since mid-November, around 1.1380-85, also tests the near-term upside of the pair.

Should EUR/USD prices rally beyond 1.1385, 50% Fibonacci retracement (Fibo.) of late October-November declines, around 1.1500, will probe the EUR/USD advances targeting the last month’s high near 1.1616.

Meanwhile, pullback moves remain elusive beyond the previous resistance line near 1.1290.

Also acting as a downside filter is an upward sloping support line from November 24, near 1.1260.

During the EUR/USD weakness past 1.1260, the 1.1230 level and the yearly low of 1.1186 will entertain the bears.

EUR/USD: Four-hour chart

Trend: Further upside expected