EUR/USD Price Analysis: Triple Bottom above 0.9800 offer a contra bet, 0.9900 a key hurdle
|- The formation of a Triple Bottom is displaying signs of a loss in the downside momentum.
- Eurozone bulls are attempting to cross the 20-EMA at 0.9843.
- An extension of recovery in the asset will send it towards parity.
The EUR/USD pair is auctioning in a balanced market profile after a responsive buying action from 0.9812 in the Asian session. On a broader note, the asset has remained in the grip of bears but is now displaying signs of exhaustion on the downside. The asset has given an upside break of the consolidation formed in a narrow range of 0.9829-0.9841 in the Tokyo session.
On an hourly scale, the shared currency bulls are displaying some sort of strength as the asset has built a cushion above 0.9800. A spree of testing 0.9800s has formed a triple bottom chart pattern which indicates a bullish reversal after a longer-term downtrend.
The asset is attempting to cross the 20-period Exponential Moving Average (EMA) hurdle at 0.9843, which will strengthen the eurozone bulls. While, the 50-EMA at 0.9872 is still far from reach, which is needed to be conquered.
Meanwhile, the Relative Strength Index (RSI) (14) is oscillating in a 40.00-60.00 range, which indicates that the upside momentum has yet not been triggered.
An upside break of Thursday’s high at 0.9907 will send the asset towards Tuesday’s low at 0.9955, followed by the parity.
On the flip side, the greenback bulls could tighten the grip further if the asset drops below Thursday’s low at 0.9807, which will drag the asset towards the 14 October 2002 low of 0.9695. A drop below the latter will be a fresh two-decade low of 0.9600.
EUR/USD hourly chart
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