EUR/USD Price Analysis: Bulls concentrate on 11-week-old resistance near 1.0190
- EUR/USD prints three-day uptrend near monthly high, sidelined of late.
- Buyers seem running out of steam but sustained trading beyond 200-SMA, weekly support line push back bearish hopes.
- Previous monthly high could lure further upside, bears have a bumpy road to return.
EUR/USD bulls take a breather around a one-month high, retreating to 1.0135 during a three-day uptrend to Tuesday’s Asian session. In doing so, the major currency pair prints the cautious mood of traders ahead of the key US inflation data.
The quote rose to the highest levels in one month before retreating from a downward sloping resistance line stretched from June 27. Even so, the weekly support line triggered the EUR/USD pair’s rebound.
That said, the quote’s sustained trading above the 200-SMA and bullish MACD signals also keep the pair buyers hopeful.
However, a clear upside break of the aforementioned resistance line, around 1.0190, becomes necessary for the EUR/USD bulls to keep reins. Following that, a run-up towards the August month high near 1.0365-70 can’t be ruled out.
Alternatively, a downside break of the weekly support line, close to 1.0120 by the press time, needs validation from the 200-SMA level near 1.0095 to recall the EUR/USD bears.
Even so, the parity level, the 0.9950 and the 0.9900 threshold could challenge the quote’s further weakness before directing the sellers towards the yearly low near 0.9860.
EUR/USD: Four-hour chart
Trend: Limited 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.
