EURUSD bulls bracing for a bumpy road with eyes on Fed, ECB

A sustained break of the 100-SMA and gradually rising RSI line keep EURUSD buyers hopeful as global markets await the key central bank announcements scheduled for the week. Although the European Central Bank (ECB) has more reasons to sound dovish and the Fed hawks are in full swing, Omicron threatens the market expectations and may throw a wild card. That said, the upper line of the 13-day-old triangle and a descending resistance line from late September, around 1.1345-50, will challenge the immediate recovery moves ahead of the 200-SMA level near 1.1405-10. Also acting as an additional upside filter is the mid-November swing high near 1.1465.

Meanwhile, a downside break of the 100-SMA, close to 1.1285 by the press time, will attack the lower line of the stated triangle, near 1.1240, followed by the monthly low surrounding 1.1230. Should EURUSD bears manage to conquer the 1.1230 support, the odds of witnessing a fresh yearly low beneath the latest 1.1188 figure can’t be ruled out. Overall, EURUSD bears seem to have tired of late but the bulls need validation ahead of the crucial events.