EUR/USD Price Analysis: Recovery approaches fortnight-old hurdle near 1.0040
- EUR/USD remains firmer for the third consecutive day buyers attack short-term key resistance line.
- Impending bull cross on the MACD and a sustained break of the 10-DMA also favor upside momentum.
- 50-DMA appears the key resistance, bears can retake control by breaking July’s low.
EUR/USD picks up bids to extend the weekly gains to 1.0025 during Wednesday’s Asian session. In doing so, the major currency pair prints a three-day uptrend while justifying the first daily close above the 10-DMA since August 15.
However, a two-week-long descending trend line, around 1.0040 by the press time, guards the quote’s immediate recovery moves. Following that, a run-up towards the 1.0100 threshold can’t be ruled out.
Even so, the EUR/USD bulls need a successful closing beyond the 50-DMA hurdle surrounding 1.0195 to retake control.
That said, the looming bull cross of the MACD and steady RSI appears to favor the short-term upside of the quote.
Alternatively, pullback moves remain elusive beyond the 10-DMA support near the parity level of 1.0000.
Following that, July’s bottom near 0.9950 could entertain bears before directing them to the recently flashed 19-year low of 0.9900.
Overall, EUR/USD is up for grabs by the intraday bulls but the risk to the downside can’t be ignored due to the presence of the inflation data on the calendar.
Also read: EUR/USD stays defensive above 1.0000 despite hawkish ECBspeak ahead of EU inflation
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.
