EURUSD Price Analysis: Eases from six-month-old resistance zone surrounding 1.0350
- EURUSD bulls take a breather around the highest levels in three months.
- Overbought RSI, the key resistance zone tests the pair’s further upside.
- 200-DMA adds to the upside filters before directing buyers to late June’s top.
- September’s high, 100-DMA challenges the bearish bias, 1.0280 appears immediate support.
EURUSD consolidates the biggest weekly gains since March 2020 as it prints 0.70% intraday loss, the first in three days, around 1.0330 during Monday’s Asian session.
In doing so, the major currency pair retreats from a six-month-old horizontal resistance area amid the overbought RSI (14) line.
Although the failure to cross the key resistance zone surrounding 1.0350-70 keeps sellers hopeful amid the overbought RSI conditions, the bears have tough challenges to tackle moving forward.
That said, the 38.2% Fibonacci retracement level of the EURUSD pair’s February-September downside, near 1.0280, appears to be the immediate support to watch during the quote’s further declines.
Following that, tops marked during September and the 100-DMA, respectively near 1.0200 and 1.0030 will be in focus.
In a case where EURUSD bears manage to conquer the 1.0030 support, the 1.0000 parity level will be the last defense of buyers.
Meanwhile, recovery moves need a daily closing beyond 1.0370 to aim for the 200-DMA hurdle surrounding 1.0435.
Should the EURUSD bulls manage to keep the reins past the 200-DMA, the odds of witnessing a run-up towards late June highs near 1.0570 can’t be ruled out.
Overall, EURUSD remains on the buyer’s radar but short-term pullback can’t be ruled out.
EURUSD: Daily 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.
