- EUR/USD snaps three-day uptrend, grinds lower at intraday bottom.
- MACD, RSI hint at a gradual upward trajectory but 1.0370 is the key hurdle.
- Further downside can aim the 1.0190 support confluence.
EUR/USD remains pressured around the intraday low of 1.0275 heading into Thursday’s European session.
In doing so, the major currency pair keeps the previous day’s pullback from a three-month-old ascending resistance line, around 1.0370 by the press time. However, bullish MACD signals and the firmer RSI (14) challenge the sellers.
Also likely to restrict the short-term EUR/USD downside is the convergence of the 21-DMA, an ascending trend line from July 14 and a two-month-old previous resistance line, close to 1.0190.
Should the quote drop below 1.0190 support, the odds of its slump towards the yearly low surrounding 0.9950 can’t be ruled out. However, 1.0120 and the 1.0000 parity level may offer intermediate halts during the fall.
Meanwhile, the 1.0300 threshold and the 50-DMA level surrounding 1.0340 guard the EUR/USD pair’s short-term upside.
In a case where EUR/USD bulls manage to keep reins past 1.0340, a run-up towards the late June swing high near 1.0615 appears more likely.
Overall, EUR/USD grinds higher with the limited downside expected for the short-term.
EUR/USD: Daily chart
Trend: Limited downside expected
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