EUR/USD Price Analysis: Euro bulls attack 1.0910 upside hurdle on softer Greenback
- EUR/USD stays defensive as bulls struggle to justify a one-month-old falling wedge bullish chart formation.
- Strong yields fail to impress US Dollar bulls amid market’s consolidation ahead of central bankers’ speeches at Jackson Hole.
- 200-SMA, previous support line from May add to the upside filters.
- Euro bears need validation from 1.0830 to retake control.
EUR/USD buyers flirt with the 1.0900 threshold within a one-month-long falling wedge bullish chart formation on early Tuesday.
The Euro pair’s latest moves could be linked to the market’s cautious mood ahead of this week’s top-tier data/events, as well as the recent fears emanating from the US banking sector. The same weighs on the US Dollar Index (DXY) even as the Treasury bond yields refresh a multi-year high.
That said, the upbeat RSI (14) line and the bullish MACD signals keep the EUR/USD buyers hopeful of confirming the falling wedge chart pattern suggesting a theoretical target of 1.1340.
However, successful trading beyond the stated wedge’s top line, around 1.0910 by the press time, becomes necessary for the bullish confirmation.
Even so, the 200-SMA and the previous support line stretched from May 31, respectively near 1.1025 and 1.1095, can prod the EUR/USD bulls.
On the contrary, a downside break of the stated wedge’s bottom line, close to 1.0830 at the latest, puts a floor under the Euro pair for the short term.
Following that, the early June’s swing high of around 1.0775-80 could lure the EUR/USD sellers.
EUR/USD: Four-hour chart
Trend: Further 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.
