EUR/USD Price Analysis: Fades bounce off fortnight-old support line below 1.0900
- EUR/USD seesaws around intraday high after snapping two-day downtrend.
- Descending resistance line from Thursday, 50-HMA restrict immediate upside.
- MACD, RSI conditions back the latest recovery moves from two-week-long ascending trend line.
EUR/USD struggles to extend the bounce off a two-week-long support line as it makes rounds to 1.0870 during early Monday. In doing so, the major currency pair also fades the upside momentum after the first positive day in three.
That said, the quote’s recovery from an upward-sloping trend line from January 12 takes clues from the RSI (14) rebound from the oversold territory, near the 50.00 mark in the press time. Adding strength to the upside momentum are the bullish MACD signals.
However, a descending resistance line from Thursday, close to 1.0880 at the latest, guards the quote’s nearby upside.
Following that, the 50-Hour Moving Average (HMA) level surrounding 1.0885 and 1.0900 could probe the EUR/USD buyers before directing them to the monthly high of 1.0930 marked in the last week.
It should be noted that the EUR/USD pair’s successful run-up beyond 1.0930 enables it to challenge the 1.1000 psychological magnet.
Meanwhile, a downside break of the aforementioned fortnight-old support line, close to 1.0840 by the press time, becomes necessary for the EUR/USD bears to retake control.
In a case where the EUR/USD prices remain weak past 1.0840, lows marked during January 18 and 12, respectively near 1.0765 and 1.0730, will be crucial to watch.
EUR/USD: Hourly chart
Trend: Limited 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.
