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EUR/USD Price Analysis: Euro stays defensive above 1.0770 support ahead of German/US data

  • EUR/USD remains lackluster after bouncing off 5.5-month-old rising support line, reverses from intraday high of late.
  • Receding bearish bias of MACD, nearly oversold RSI suggests further recovery of bloc’s currency.
  • Convergence of 10-DMA, fortnight-old resistance guards immediate upside ahead of 1.0910 hurdle.
  • Euro bears need validation from 1.0750 to retake control.

EUR/USD reverses from intraday high despite lacking upside momentum during very early Tuesday morning in Europe. Even so, the Euro pair remains on the bull’s radar while flashing 1.0825 as a quote by the press time, as it defends the previous day’s U-turn from an upward-sloping support line from March 15.

Apart from the U-turn from an important support line, the receding bearish bias of the MACD signals and the nearly oversold RSI (14) line also keeps Euro buyers hopeful as they await Germany’s GfK Consumer Confidence Survey for September, expected -24.3 versus -24.4 prior. Following that, the US Conference Board’s (CB) Consumer Confidence Index for August, expected at 116.2 versus prior 117.00, will entertain the intraday traders of the pair.

Also read: EUR/USD: Euro bulls approach 1.0850 as US Dollar traces softer yields, focus on German/US statistics

It’s worth noting that a convergence of the 10-DMA and a 13-day-long falling trend line guards immediate recovery of the EUR/USD pair near 1.0850.

Following that, the 21-DMA and a descending resistance line from July 18, close to 1.0910, will be the last defense of the Euro bears.

Alternatively, the EUR/USD sellers need a daily closing beneath the previously stated key support line, around 1.0770 by the press time.

Even so, a horizontal support zone comprising multiple levels marked since March 13, near 1.0765–50, appears a tough nut to crack for the pair.

To sum up, EUR/USD buyers remain hopeful but the upside needs a strong fundamental push to cross the sturdy hurdles.

EUR/USD: Daily chart

Trend: Limited upside expected

Additional important levels

Overview
Today last price1.0824
Today Daily Change0.0005
Today Daily Change %0.05%
Today daily open1.0819
 
Trends
Daily SMA201.091
Daily SMA501.0975
Daily SMA1001.0927
Daily SMA2001.0806
 
Levels
Previous Daily High1.0822
Previous Daily Low1.0794
Previous Weekly High1.093
Previous Weekly Low1.0766
Previous Monthly High1.1276
Previous Monthly Low1.0834
Daily Fibonacci 38.2%1.0811
Daily Fibonacci 61.8%1.0805
Daily Pivot Point S11.0801
Daily Pivot Point S21.0783
Daily Pivot Point S31.0772
Daily Pivot Point R11.083
Daily Pivot Point R21.084
Daily Pivot Point R31.0859

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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