EUR/USD Price Analysis: Bulls hold gains on prolonged consolidation breakout, 1.0800 eyed
|- A bullish break of a prolonged consolidation has underpinned the shared currency bulls.
- The asset is marching towards 1.0800 as bulls are firmer above the 200-EMA.
- A bullish range oscillation (60.00-80.00) by the RSI (14) signals the strength of the bulls.
The EUR/USD pair is experiencing a minor pullback after struggling to overstep the round-level resistance of 1.0700 from Monday. The shared currency bulls are witnessing some profit-booking after a vertical upside move from May 13 low around 1.0350.
An upside break of the prolonged consolidation in a wider range of 1.0350-1.0604 has triggered a firmer bullish reversal in the asset. The breakout of a wider consolidation results in higher volume and wider ticks. The euro bulls have strongly pierced the 200-period Exponential Moving Average (EMA) at 1.0647, which signals a continuation of bullish momentum. Also, the asset prices and the 20-period EMA at 1.0606 are carrying a wide margin on the upside, which indicates the strength of the bulls.
Meanwhile, the Relative Strength Index (RSI) (14) has shifted into a bullish range of 60.00-80.00, which signals a sheer upside ahead.
A corrective pullback towards the horizontal resistance of the above-mentioned consolidation at 1.0604 will be a bargain buy opportunity for the market participants. This will send the asset towards April 26 high at 1.0739, followed by the round-level resistance at 1.0800.
On the flip side, the greenback bulls could regain control if the asset drops below May 20 low at 1.0533. An occurrence of the same will drag the asset towards May 15 low and May 13 high at 1.0460 and 1.0420 respectively.
EUR/USD four-hour chart
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