EUR/USD technical analysis: Multiple barriers on the road to recovery, 1.0987 be the closest
- EUR/USD rises towards a three-week-old falling trend-line, 38.2% Fibonacci retracement.
- 50% Fibonacci retracement, 200-bar SMA and a descending resistance-line since late-August add to the upside barriers.
- 23.6% Fibonacci retracement, immediate support-line questions pair’s declines.
EUR/USD again aims for 1.0987 resistance-confluence while taking the bids to 1.0980 amid the initial trading session on Friday.
However, rising levels of 14-bar relative strength index (RSI) towards overbought territory might trigger the pair’s another pullback, if not then buyers will target another upside barrier around 1.1020/25 including 200-bar simple moving average (SMA) and 50% Fibonacci retracement of pair’s downpour since late-August.
Should there be additional run-up past-1.1025, a falling trend-line since August 25 and 61.8% Fibonacci retracement, nearing 1.1050/55, will be the key as a break of which can escalate the upward trajectory to mid-September tops close to 1.1110.
During the pair’s pullback, 1.0945/40 area including a three-day-old rising trend-line and 23.6% Fibonacci retracement becomes the key as declines below the same could recall 1.0900 and 1.0880 to the chart
EUR/USD 4-hour chart
Trend: pullback 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.
