EUR/USD Price Analysis: Keeps pullback from 100-DMA near 0.9950
- EUR/USD remains sidelined after reversing from a six-week high.
- Sustained break of 50-DMA, descending trend line from June keeps buyers hopeful.
- MACD, RSI both suggests further upside, September’s top acts as an extra filter to the north.
- Sellers need validation from monthly support line to retake control.
EUR/USD holds lower ground following a U-turn from the monthly high, making rounds to 0.9965-70 during early Friday morning in Asia. The major currency pair refreshed the six-week high the previous day before the 100-DMA probed bulls.
The pullback, however, failed to nullify the mid-week breakout of the previous resistance line from late June. Also keeping the buyers hopeful are the bullish MACD signals and the firmer RSI (14).
Even if the quote drop below the resistance-turned-support from June 27, around 0.9830 by the press time, the 50-DMA level of 0.9890 support will act as an additional downside filter.
It should be noted that the EUR/USD buyers remain hopeful unless the quote stays above an upward-sloping support line from late September, close to 0.9830 at the latest.
Meanwhile, fresh recovery could aim for the 100-DMA hurdle of 1.0085, a break of which will need validation from the previous monthly top surrounding 1.0920 to convince EUR/USD bulls.
In a case where EUR/USD remains firmer past 1.0920, the August 2022 peak of 1.0368 should be on the buyer’s radar.
Overall, EUR/USD is likely to remain firmer but the road to the north will be a bumpy one.
EUR/USD: Daily chart
Trend: Further upside expected