EUR/USD Price Analysis: Grinds higher past 1.0710 support confluence
- EUR/USD picks up bids to reverse the previous day’s pullback inside weekly rectangle formation.
- Short-term ascending trend line, bull cross keeps buyers hopeful amid firmer RSI.
- Late December top adds to the downside filters.
EUR/USD renews its intraday high around 1.0750 as it extends the day-start recovery during a sluggish mid-Asian session of Wednesday. In doing so, the major currency pair prints mild gains inside a three-day-old rectangle formation.
Even so, the pair’s successful rebound from the weekly support line and firmer RSI (14) keeps the buyers hopeful. Adding strength to the upside bias is the 100-HMA’s crossing of the 200-HMA from below, also known as the bull cross.
As a result, the EUR/USD pair is likely to overcome the 1.0760 immediate hurdle, which in turn could propel prices towards May 2022 peak surrounding 1.0785. However, the 1.0800 round figure and the likely overbought RSI (14) conditions at that level could challenge the pair buyers afterward.
Should the EUR/USD price remains firmer past 1.0800, March 2022 low near 1.0810 could act as the last defense of the sellers before highlighting the 1.1000 psychological magnet for the bulls.
On the flip side, an upward-sloping support line from Monday, around 1.0735 by the press time, restricts immediate EUR/USD downside ahead of the stated rectangle’s bottom, around 1.0710. That said, the tops marked during late December add strength to the 1.0710 support level.
Even if the quote drops below the 1.0710 level, the 100-HMA and the 200-HMA could challenge the pair’s further downside near 1.0645-40.
EUR/USD: Hourly chart
Trend: Further upside expected