EUR/USD Price Analysis: Bulls keep reins above 1.0220 support confluence
|- EUR/USD remains sidelined after ending the week on a negative note, despite refreshing monthly peak.
- Convergence of 21-DMA, one-month-old ascending trend line restricts immediate downside.
- Descending resistance line from May-end guards immediate upside, three-month-old ascending trend line, 50% Fibonacci retracement appears tough nut to crack for bulls.
- MACD, RSI hints at the pair’s further upside momentum.
EUR/USD remains sidelined around 1.0260 after a softer end to the positive week, amid cautious sentiment ahead of Wednesday’s Federal Open Market Committee (FOMC) Minutes.
The major currency pair’s latest moves are clubbed between the 1.0220 support and the 1.0315 resistance levels.
That said, a convergence of the 21-DMA and a one-month-old ascending trend line restricts the immediate downside. On the contrary, the 50-DMA and Descending resistance line from late May questions the EUR/USD bulls.
It’s worth noting that the bullish MACD signals and the firmer RSI (14) line, not overbought, appear to keep the buyers hopeful.
That said, a clear upside break of the 1.0315 hurdle could propel the quote towards an upward sloping support-turned-resistance line from mid-May and the 50% Fibonacci retracement level of May-July downside, near 1.0375.
On the flip side, a daily closing below 1.0220 appears necessary for the EUR/USD bears to retake control.
Following that, multiple levels around 1.0120 and 1.0100 could challenge the pair’s further downside.
In a case where the EUR/USD pair remains weak past 1.0100, the 1.0000 parity level and the yearly low of 0.9952 will be in focus.
Overall, EUR/USD buyers are in the driver’s seat but the road to the north appears bumpy.
EUR/USD: Daily chart
Trend: Limited upside expected
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