EUR/USD Price Analysis: Bull cross prods Euro sellers above 1.0940 support ahead of key PMIs
- EUR/USD struggles to extend the previous day’s pullback from seven-week high, sidelined of late.
- Bullish moving average crossover keeps Euro buyers hopeful above fortnight-old ascending support line.
- Bearish MACD signals, monthly rising wedge and a U-turn from six-week high challenge EUR/USD buyers.
- First readings of June’s PMIs for Germany, Eurozone and US will decorate calendar, risk catalysts are the key to watch.
EUR/USD licks its wounds around mid-1.0900s after falling the most in two weeks as market players await the preliminary readings of June activity data from Germany, the Eurozone and the US on early Friday. In doing so, the Euro pair also portrays a struggle amid mixed technical catalysts.
Also read: EUR/USD pullback jostles with 1.0950 as central banks, Fed Powell propel US Dollar, PMI in focus
That said, the 100-SMA pierces the 200-SMA from below and depicts the “Bull cross” on the four-hour chart. The same joins the comparatively more hawkish bias of the European Central Bank (ECB) Officials versus the Federal Reserve’s (Fed) pause of the rate hike trajectory to challenge the Euro bears of late.
However, a rising wedge bearish chart formation and downbeat MACD signals join the Euro pair’s U-turn from the six-week-old horizontal resistance area, around 1.1000-1.1005, to tame the bullish bias surrounding the EUR/USD pair.
Hence, the quote’s latest inaction remains elusive unless it either confirms the rising wedge by breaking the 1.0940 support or crosses the last Friday’s peak of 1.0970.
It should be noted that the rising wedge confirmation will need validation from the aforementioned SMA confluence surrounding 1.0815-10 and an ascending support line from May 31, close to 1.0770 by the press time.
On the contrary, an upside break of the 1.0970 and 1.1005 immediate hurdles will allow the EUR/USD bulls to challenge the rising wedge bearish chart formation by poking the stated pattern’s top line of around 1.1060.
EUR/USD: Four-hour chart
Trend: Limited recovery 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.
