EUR/USD Price Analysis: Braces for fresh monthly high despite recent inaction around 1.0400
- EUR/USD dribbles around one-week high after crossing short-term key hurdle.
- Nearly overbought RSI conditions could challenge bulls around monthly peak.
- 50-SMA, resistance-turned-support line restrict immediate downside amid bullish MACD signals.
EUR/USD bulls take a breather around a one-week high near 1.0400 during Thursday’s Asian session, following a two-day uptrend. Even so, the major currency pair remains on the way to the monthly top, as well as appears capable of crossing it, on crossing the short-term key hurdles, now nearby supports.
Not only a successful break of a one-week-old descending trend line and the 50-SMA but bullish MACD signals also keep the EUR/USD buyers hopeful of approaching the monthly high near 1.0480, as well as the 1.0500 threshold.
Though, nearly overbought conditions of the RSI (14) could challenge the quote’s further advances.
If the pair remains firmer past 1.0500, late June’s peak surrounding 1.0615 will gain the EUR/USD buyer’s attention before highlighting the June month’s high of 1.0786.
Alternatively, the 50-SMA level, close to 1.0340, precedes the previous resistance line from November 15, around 1.0280, to restrict short-term EUR/USD downside.
Even if the EUR/USD pair drops below 1.0280, an ascending trend line from October 04, close to 1.0220, should be eyed closely as a clear break of which won’t hesitate to direct the bears toward the 200-SMA support near the parity level.
EUR/USD: Four-hour chart
Trend: Further upside expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
