EUR/USD Price Analysis: Euro bulls flex muscles within weekly Pennant around 1.0700
- EUR/USD remains sidelined within trend continuation chart pattern.
- Sustained trading beyond five-month-old ascending support line lures Euro buyers.
- Looming bull cross on MACD, nearly oversold RSI signal EUR/USD’s further upside.
- Pennant’s top line, 100-DMA challenge Euro bulls before giving control.
EUR/USD steadies within a one-week-old Pennant formation, near 1.0700 by the press time of early Thursday in Asia, as bulls and bears jostle amid fears of economic slowdown, higher rates and softer Eurozone data.
That said, the Euro pair’s rebound from a five-month-old ascending support line joins the recently downbeat RSI (14) line, as well as an impending bull cross on the MACD, to keep the EUR/USD buyers hopeful.
However, a clear upside break of the stated Pennant’s top line, currently around 1.0730, becomes necessary for the EUR/USD pair buyers to retake control.
Even so, the 100-DMA hurdle of around 1.0810 can check the upside momentum ahead of directing the Euro price towards the mid-May swing high of near 1.0910.
On a different page, the stated Pennant’s bottom line, close to 1.0670 by the press time, restricts the short-term downside of the EUR/USD, a break of which will drag the Euro pair to an upward-sloping support line from early January, near 1.0640.
It’s worth noting that the previous monthly low of around 1.0635 acts as an extra check for the EUR/USD bears, past 1.0640, before directing them to the lows marked in March and January, respectively near 1.0515 and 1.0480 in that order.
EUR/USD: Daily chart
Trend: 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.
