EUR/USD Price Analysis: Bulls keep reins above 1.0220 support confluence

EUR/USD remains sidelined after ending the week on a negative note, despite refreshing monthly peak.
Convergence of 21-DMA, one-month-old ascending trend line restricts immediate downside.
Descending resistance line from May-end guards immediate upside, three-month-old ascending trend line, 50% Fibonacci retracement appears tough nut to crack for bulls.
MACD, RSI hints at the pair’s further upside momentum.

Anil Panchal FXStreet

EUR/USD remains sidelined around 1.0260 after a softer end to the positive week, amid cautious sentiment ahead of Wednesday’s Federal Open Market Committee (FOMC) Minutes.

The major currency pair’s latest moves are clubbed between the 1.0220 support and the 1.0315 resistance levels.

That said, a convergence of the 21-DMA and a one-month-old ascending trend line restricts the immediate downside. On the contrary, the 50-DMA and Descending resistance line from late May questions the EUR/USD bulls.

It’s worth noting that the bullish MACD signals and the firmer RSI (14) line, not overbought, appear to keep the buyers hopeful.

That said, a clear upside break of the 1.0315 hurdle could propel the quote towards an upward sloping support-turned-resistance line from mid-May and the 50% Fibonacci retracement level of May-July downside, near 1.0375.

On the flip side, a daily closing below 1.0220 appears necessary for the EUR/USD bears to retake control.

Following that, multiple levels around 1.0120 and 1.0100 could challenge the pair’s further downside.

In a case where the EUR/USD pair remains weak past 1.0100, the 1.0000 parity level and the yearly low of 0.9952 will be in focus.

Overall, EUR/USD buyers are in the driver’s seat but the road to the north appears bumpy.

EUR/USD: Daily chart

Trend: Limited upside expected

Additional important levels

Overview
Today last price	1.026
Today Daily Change	0.0000
Today Daily Change %	0.00%
Today daily open	1.026

Trends
Daily SMA20	1.0212
Daily SMA50	1.0329
Daily SMA100	1.0525
Daily SMA200	1.0896

Levels
Previous Daily High	1.0328
Previous Daily Low	1.0238
Previous Weekly High	1.0369
Previous Weekly Low	1.0159
Previous Monthly High	1.0486
Previous Monthly Low	0.9952
Daily Fibonacci 38.2%	1.0272
Daily Fibonacci 61.8%	1.0293
Daily Pivot Point S1	1.0223
Daily Pivot Point S2	1.0186
Daily Pivot Point S3	1.0134
Daily Pivot Point R1	1.0313
Daily Pivot Point R2	1.0365
Daily Pivot Point R3	1.0402

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.

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