EUR/USD Price Analysis: Sellers need to break 1.2100 for conviction

• EUR/USD remains depressed after reversing from February high.
• 21-day SMA, ascending trend line from March 31 offers the key support confluence.
• 1.2250 holds the key to bull-run targeting yearly top.

EUR/USD holds lower ground near 1.2175 during the initial Asian session trading on Thursday. The currency major pair dropped the most in over a week after refreshing a three-month high, not to forget snapping a four-day winning streak, on Wednesday.

Failures to cross February high and sluggish MACD could extend the latest pullback towards April’s top surrounding 1.2150.

However, a convergence of 21-day SMA and a seven-week-old support line near 1.2100 becomes the key support to break for EUR/USD sellers.

In a case where bears manage to conquer the 1.2100 crucial level, odds of witnessing a fresh low of the month, below the latest trough near 1.1985, can’t be ruled out.

Alternatively, the 1.2200 threshold and the ‘double top’ around 1.2250 become crucial upside levels to watch during the pair’s fresh run-up.

Should EUR/USD bulls manage to cross 1.2250 on a daily closing, the yearly peak near 1.2350 will be in the spotlight.

EUR/USD daily chart

Trend: Bullish