EUR/USD Price Analysis: Flirts with short-term resistance below 1.1600

• EUR/USD remains sidelined around two-week-old descending trend line, eases of late.
• Upbeat Momentum, weekly support line keep buyers hopeful.
• 50-SMA holds the key to run-up for monthly peak.

EUR/USD consolidates Friday’s recovery moves, clings to immediate resistance around 1.1570 during Monday’s Asian session. In doing so, the currency major pair struggles with a downward sloping trend line from September 24.

Given the recovery in Momentum, as well as a short-term rising trend line formation, EUR/USD bulls are likely to aim for further upside. However, 50-SMA adds to the upside filters.

Hence, not only the 1.1570 but the SMA figure around 1.1590 also challenges the pair buyers before directing them to the monthly top near 1.1640.

Additionally challenging the pair’s upside moves is the area comprising September 22-23 lows close to 1.1680-85.

Alternatively, the stated support line near 1.1550 restricts short-term declines of the EUR/USD ahead of the recent multi-month low of 1.1529.

Also acting as the downside filter is the 1.1500 threshold, a break of which can direct the quote towards March 2020 high near 1.1495.

EUR/USD: Four-hour chart

Trend: Further recovery expected