EUR/USD Price Analysis: Euro bulls struggle within small range near 1.1000 amid pre-Fed anxiety
|- EUR/USD grinds higher while defending the previous day’s U-turn from 21-DMA, upside break of one-week-old resistance.
- Bearish MACD signals, limited room towards the north suggest bulls run out of steam.
- Euro sellers need validation from 21-DMA, late March swing high.
EUR/USD prints mild gains around 1.1010 while keeping the previous day’s rebound from the lowest levels in a week amid early Wednesday. In doing so, the Euro pair aptly portrays the market’s cautious mood ahead of the key US data and the Federal Open Market Committee (FOMC) monetary policy meeting announcements.
That said, a clear bounce off the 21-DMA support, around 1.0970 by the press time, followed by an upside break of the one-week-old previous resistance line, now nearby support around 1.0990, keeps the EUR/USD pair buyers hopeful.
However, a one-month-old previous support line, close to 1.1025 at the latest, precedes an upward-sloping resistance line from February 2023, surrounding 1.1075, to challenge the EUR/USD bulls.
It’s worth noting that the MACD signals are bearish but the RSI (14) line is firmer, not overbought, which in turn suggests a gradual run-up in the EUR/USD prices.
On the contrary, a downside break of the previous resistance line from April 26, now immediate support near 1.0990, could direct the Euro sellers towards the 21-DMA support of 1.0970.
Following that, tops marked during late March around 1.0930 may check EUR/USD bears before giving them control.
EUR/USD: Daily chart
Trend: Limited upside expected
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