- EUR/USD seesaws around weekly high after rising the most in one-week the previous day.
- Upbeat sentiment, softer yields supersede hawkish Fed talks to propel the Euro pair.
- 10-week-old horizontal resistance area can challenge bulls are RSI turns overbought.
- Sellers need 50-SMA breakdown to retake control; January’s top can lure bulls past 1.0930 hurdle.
EUR/USD depicts the market’s pre-inflation anxiety while making rounds to 1.0900, after refreshing a one-week high, during early Friday. In doing so, the Euro pair portrays another battle with the key horizontal resistance established on January 23.
Given the overbought RSI (14) and the Euro pair’s repeated failures to cross the 1.0930-35 horizontal resistance area, the pair buyers are likely to witness one more disappointment should the Eurozone inflation data ease and/or US Core PCE Price Index softens.
Also read: EUR/USD Forecast: Positive signs for the Euro ahead of more inflation data
In a case where the EUR/USD bulls ignore the RSI (14) conditions, backed by fundamental support, and cross the 1.0935 hurdle, the odds of witnessing a rally towards the yearly top marked in January near 1.1035 can’t be ruled out.
Meanwhile, a two-week-old ascending support line, close to 1.0850 at the latest, restricts the short-term EUR/USD downside.
Following that, the 50-SMA level surrounding 1.0820 and the mid-March high near 1.0750 can act as the last defenses of the EUR/USD buyers, a break of which could quickly drag the quote towards the monthly low of near 1.0515.
Overall, the EUR/USD pair remains on the bull’s radar unless breaking the 1.0750 level but the limited upside room highlights today’s inflation numbers as the key catalysts.
EUR/USD: Daily chart
Trend: Limited upside expected
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