EUR/USD Price Analysis: Double bottom around 1.0760 keeps Euro buyers hopeful
- EUR/USD picks up bids to consolidate recent losses, forms bullish chart pattern.
- Convergence of 50-HMA, 100-HMA and fortnight-long resistance line appears a tough nut to crack for Euro buyers.
- Sellers can aim for late March swing lows on 1.0760 breakdown.
- ECB’s Lagarde, Fed Minutes eyed for clear directions.
EUR/USD glides on a dicey floor with mild gains around 1.0775 as it waits for the key catalysts on early Wednesday in Europe. In doing so, the Euro pair forms a bullish chart pattern called the “Double Bottom” with eyes on a speech from European Central Bank (ECB) President Christine Lagarde and Minutes of the latest Federal Open Market Committee (FOMC) Monetary Policy Meeting.
Not only the “Double Bottom” formation but the recent improvements in the RSI (14) line from the oversold territory and the bullish MACD signals also underpin the hopes of the EUR/USD pair’s further recovery.
However, the 100-Hour Moving Average (HMA) joins the 50-HMA and a downward-sloping trend line from early May to constitute the 1.0800 as the key upside hurdle for the Euro buyers to cross to retake control.
Following that, a quick run-up towards the 200-HMA and mid-May low, respectively near 1.0835 and 1.0845 can’t be ruled out.
On the contrary, EUR/USD pullback remains elusive unless the quote stays beyond the “Double Bottom” of around 1.0760.
Should the Euro bears manage to conquer the 1.0760 key support and defy the bullish chart formation, the pair becomes vulnerable to plunging toward the late March low of near 1.0715.
EUR/USD: Hourly 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.
