EUR/USD Price Analysis: Bulls keep the reins ahead of US inflation
|- EUR/USD stays firmer around seven-month high, approaching mid-2022 top.
- Nearly overbought RSI challenges buyers as they brace for key hurdles.
- Looming bull cross on MACD, clear upside break of one-month-old descending trend line favor bulls.
- EUR/USD buyers can aim for ascending trend line from mid-November on crossing 1.0805.
EUR/USD bulls take a breather around the highest levels since June 2022, marked the previous day, as they brace for the key US Consumer Price Index (CPI) data for December during early Thursday. In doing so, the major currency pair prints mild gains around 1.0775 by the press time.
A successful break of a descending trend line from December 15, 2022, around 1.0685 by the press time, joins the looming bull cross on the MACD to keep buyers hopeful. However, the RSI (14) line is near the overbought conditions and suggests limited upside room for the pair.
As a result, the May 2022 peak of 1.0786 appears a major challenge for the EUR/USD bulls, a break of which will highlight the March 2022 bottom surrounding 1.0805 as the next key hurdle for the upside momentum.
In a case where the EUR/USD pair manage to remain firmer past 1.0805, the odds of witnessing a run-up towards a two-month-old ascending resistance line, close to 1.0965 at the latest, can’t be ruled out.
On the flip side, pullback moves may initially aim for a December 2022 high of 1.0736 before resting on the resistance-turned-support line near 1.0685.
In a case where EUR/USD remains bearish past 1.0685, a downward trajectory towards the monthly low of 1.0483 can be witnessed.
EUR/USD: Daily chart
Trend: Limited upside expected
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