EUR/USD Price Analysis: 1.1860 holds the key to further recovery

• EUR/USD bulls take a breather, following the strongest daily gains in a month.
• Further gains envisioned on MACD conditions but bulls seek falling wedge confirmation for conviction.
• 200-SMA adds to the upside filters, sellers could aim for yearly low on fresh downside.

EUR/USD edges higher around 1.1835 inside a bullish chart pattern amid the initial Asian session on Thursday.

The currency major’s rebound from the fresh low since early April the previous day renewed bullish hopes, backed by the MACD line’s likely crossover to the signal indicator, signaling a positive run.

However, a clear break of the 1.1860 figure, comprising the stated wedge’s upper line, becomes necessary for the EUR/USD bulls to aim for a 200-SMA level of 1.1985.

During the upside, the 1.1900 threshold and the late June’s top near 1.1975 may act as intermediate halts.

Meanwhile, pullback moves will recall the 1.1800 round figure to the chart before testing the bullish formation’s support line, around 1.1765.

In a case where the EUR/USD prices remain downbeat below 1.1765, the yearly low surrounding 1.1700 will be in focus for the sellers.

EUR/USD: Four-hour chart

Trend: Further recovery expected