EUR/USD Price Analysis: Bulls await a sustained move beyond 200-day SMA

• EUR/USD failed to capitalize on its intraday spike to the highest level since early April.
• The set-up favours bulls and supports prospects for the emergence of some dip-buying.
• A daily close above multi-week-old trading range needed to confirm a bullish breakout.

The EUR/USD pair rallied nearly 100 pips from an intraday low level of 1.0934 and jumped to the highest level since early April. Bulls, however, struggled to capitalize on the momentum or find acceptance above the very important 200-day SMA.

The pair quickly retreated around 40-50 pips from the daily swing high. Slightly overbought conditions on the 1-hourly chart seemed to be the only factor that might have prompted some selling at higher levels amid a goodish pickup in the USD demand.

The pair was last seen trading just below the key 1.1000 psychological mark, around the top end of a multi-week-old trading range. A daily close above the mentioned barrier will confirm a near-term bullish breakout and set the stage for additional gains.

Meanwhile, technical indicators on the daily chart have just started moving into the bullish territory and support prospects for the emergence of some dip-buying. Hence, any subsequent pullback towards the 1.0950-40 region might still be seen as a buying opportunity.

The pair seems all set to surpass an intermediate resistance near the 1.1060 region and aim towards reclaiming the 1.1100 round-figure mark. The momentum could further get extended towards late-March swing highs resistance near the 1.1145-50 supply zone.

EUR/USD daily chart

Technical levels to watch