- The formation of a Triple Bottom is displaying signs of a loss in the downside momentum.
- Eurozone bulls are attempting to cross the 20-EMA at 0.9843.
- An extension of recovery in the asset will send it towards parity.
The EUR/USD pair is auctioning in a balanced market profile after a responsive buying action from 0.9812 in the Asian session. On a broader note, the asset has remained in the grip of bears but is now displaying signs of exhaustion on the downside. The asset has given an upside break of the consolidation formed in a narrow range of 0.9829-0.9841 in the Tokyo session.
On an hourly scale, the shared currency bulls are displaying some sort of strength as the asset has built a cushion above 0.9800. A spree of testing 0.9800s has formed a triple bottom chart pattern which indicates a bullish reversal after a longer-term downtrend.
The asset is attempting to cross the 20-period Exponential Moving Average (EMA) hurdle at 0.9843, which will strengthen the eurozone bulls. While, the 50-EMA at 0.9872 is still far from reach, which is needed to be conquered.
Meanwhile, the Relative Strength Index (RSI) (14) is oscillating in a 40.00-60.00 range, which indicates that the upside momentum has yet not been triggered.
An upside break of Thursday’s high at 0.9907 will send the asset towards Tuesday’s low at 0.9955, followed by the parity.
On the flip side, the greenback bulls could tighten the grip further if the asset drops below Thursday’s low at 0.9807, which will drag the asset towards the 14 October 2002 low of 0.9695. A drop below the latter will be a fresh two-decade low of 0.9600.
EUR/USD hourly chart
-637994927361447306.png)
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD loses upside momentum above 1.0760 as US NFP comes into picture
EUR/USD is consistently demonstrating a back-and-forth action above the critical support of 1.0760 in the early European session. The major currency pair is showing signs of a loss in the upside momentum amid a failure in extending its rally further.
GBP/USD grinds above 1.2500 as BoE vs. Fed play intensifies, US jobs report eyed
GBP/USD aptly portrays the pre-NFP anxiety in markets during early Friday. In doing so, the Cable pair also justifies the latest challenges to the upside momentum flagged from London.
Gold eyes a sustained move above $1,992 on weak US Nonfarm Payrolls Premium
Gold price is treading water above the $1,970 level on the United States Nonfarm Payrolls (NFP) day, as the US Dollar (USD) is licking its wounds, in the face of an upbeat market mood and mixed US economic data releases.
Pro-XRP lawyer: Ripple losing the SEC lawsuit might be a blessing in disguise
XRP price made a decent recovery in the month of May, fueled by Ripple's chances of winning the lawsuit it is facing against the Security and Exchange Commission (SEC). The cryptocurrency has amassed a huge base of supporters, which might potentially expand further regardless of the outcome.
The US labour market: A closer look at the data
The US will release its official labour market report on Friday, and traders are busy. The fast-growing indicator for new vacancies rose again in recent years, reaching over 10 million in April, defying the expected drop from 9.7 million to 9.4 million.