EUR/USD Price Analysis: Prints three-day uptrend near 1.0600 inside bullish triangle
- EUR/USD grinds higher inside a one-month-old bullish triangle.
- Nearly overbought RSI, sluggish MACD signals hint at limited upside room.
- Convergence of the key EMAs restricts short-term downside of the EUR/USD pair.
EUR/USD picks up bids to 1.0580 as buyers approach the weekly top, also the highest levels since late June, during early Friday morning in Europe.
The major currency pair’s run-up could be well-linked to the bull cross on the Daily chart as the 50-day Exponential Moving Average (EMA) crosses the 100-day EMA from below. Also favoring the buyers is the firmer RSI (14) and the absence of the bearish MACD signals. That said, the EUR/USD pair stays firmer inside a one-month-old ascending triangle.
However, sluggish MACD and the nearly overbought RSI conditions highlight the likely pullback of the major currency pair from the monthly triangle’s resistance line, close to 1.0630 by the press time.
In a case where the EUR/USD bulls cross the 1.0630 hurdle, the 1.0700 threshold and June’s peak surrounding 1.0775 should return to the chart.
On the contrary, a downside break of the stated triangle’s support line, near 1.0465 at the latest, could quickly drag the quote toward the 200-day EMA level of 1.0395.
However, the 50-day EMA and the 100-day EMA could challenge the EUR/USD bears afterward, around 1.0215 and 1.0190 in that order.
EUR/USD: Daily 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.
