EUR/USD Price Analysis: Mildly bid above 1.0800 within bearish channel
|- EUR/USD grinds higher around intraday top, extends the previous day’s rebound from two-month low.
- Clear upside break of 100-DMA, RSI rebound from nearly oversold territory underpin bullish bias for Euro.
- 12-day-old bearish channel prods Euro bulls before giving them control; 1.0720-15 is the key challenge for bears.
EUR/USD bulls keep the reins around the intraday high surrounding 1.0825-30 as buyers cheer the upside break of the 100-DMA during Monday’s Asian session. In doing so, the Euro pair stretches the previous day’s recovery moves from the lowest levels in eight weeks while approaching the top line of a fortnight-long descending trend channel.
It’s worth noting that the RSI (14) line’s rebound from nearly oversold conditions joins the EUR/USD pair’s sustained break of the 100-DMA to keep Euro buyers hopeful.
However, a clear upside break of the aforementioned bearish channel’s top line, close to 1.0860, becomes necessary for the bulls to retake control.
Even so, multiple hurdles around 1.0920 and 1.1000 may challenge the EUR/USD buyers before directing them to February’s high of 1.1033. It should be observed that the 1.1095-1100 region appears a tough nut to crack for the Euro bulls past 1.1033.
Meanwhile, EUR/USD sellers may wait for a clear downside break of the 100-DMA support of near 1.0800 for fresh entry.
Following that, the 50% Fibonacci retracement of the pair’s January-April upside, near 1.0790, could lure the EUR/USD bears. Though, a convergence of the previously stated channel’s bottom line and the 61.8% Fibonacci retracement, around 1.0720-15, becomes crucial support to watch for the EUR/USD sellers afterward.
EUR/USD: Daily chart
Trend: Further recovery expected
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