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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.

Also read: US Dollar Index: DXY retreats towards 103.00 despite strong yields, focus on mid-tier US data, central bankers

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

additional important levels

Overview
Today last price1.0899
Today Daily Change0.0003
Today Daily Change %0.03%
Today daily open1.0896
 
Trends
Daily SMA201.096
Daily SMA501.098
Daily SMA1001.0931
Daily SMA2001.0794
 
Levels
Previous Daily High1.0914
Previous Daily Low1.0867
Previous Weekly High1.096
Previous Weekly Low1.0845
Previous Monthly High1.1276
Previous Monthly Low1.0834
Daily Fibonacci 38.2%1.0896
Daily Fibonacci 61.8%1.0885
Daily Pivot Point S11.087
Daily Pivot Point S21.0845
Daily Pivot Point S31.0824
Daily Pivot Point R11.0917
Daily Pivot Point R21.0939
Daily Pivot Point R31.0964

Author

Anil Panchal

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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