EUR/USD Price Analysis: Refreshes seven-week top near 1.0930, pokes the last defense of bears
- EUR/USD picks up bids to extend six-day uptrend towards two-month high.
- Multiple hurdles marched since late January challenge Euro pair buyers.
- Sellers need validation 200-SMA, weekly support line restricts immediate downside.
- MACD favors bulls but RSI (14) line suggests limited room towards the north.
EUR/USD bulls occupy the driver’s seat for the sixth consecutive day as they prod 1.0930 mark to renew a seven-week high during early Thursday.
In doing so, the Euro pair extends the Federal Reserve (Fed) inspired gains during the one-week-old upward trajectory, as marked by an ascending trend line from March 15, amid bullish MACD signals.
However, a two-month-old horizontal resistance area surrounding 1.0930-35 joins the overbought RSI (14) line to challenge the EUR/USD buyers.
Hence, it becomes necessary for the pair to provide a successful break of 1.0930 to keep the bulls in dominating position otherwise the bears could cheer good profits on a U-turn.
It should be noted that a downward-sloping resistance line from May 2022, around 1.0950 by the press time, also acts as a short-term upside filter for the EUR/USD pair.
That said, a sustained break of 1.0950 could quickly propel the EUR/USD price toward the monthly high of 1.1033. However, the 1.1000 psychological magnet may act as an intermediate halt during the run-up.
On the flip side, a one-week-old ascending support line, close to 1.0800, puts a floor under the EUR/USD price.
However, the pair sellers should remain cautious unless the quote remains beyond the 200-SMA support of 1.0665.
EUR/USD: Four-hour 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.
