EUR/USD Price analysis: Bears need validation from 1.0145
- EUR/USD prints mild losses as it consolidates two-week gains inside monthly ascending triangle.
- Convergence of 100-SMA, triangle’s support challenges the bears.
- Buyers remain cautious unless witnessing clear run-up beyond 1.0300.
EUR/USD pulls back to 1.0210 as bulls take a breather after a two-week uptrend during Monday’s Asian session. Even so, the major currency pair remains inside the one-month-old ascending triangle amid a firmer RSI.
That said, the EUR/USD sellers should aim for the 1.0200 threshold as intraday support. However, a convergence of the 100-SMA and an upward sloping support line from July 14, around 1.0145, challenge the quote’s further downside.
Should the pair decline below 1.0145, the odds of its south-run towards July’s low of 0.9952 can’t be ruled out. During the fall, the previous weekly low near 1.0100 could offer an intermediate halt.
Meanwhile, recovery moves may initially aim for the aforementioned triangle’s upper line, close to 1.0275-80.
Following that, a downward sloping resistance line from early June and the 200-SMA, around 1.0300, hold the keys for the EUR/USD pair’s further advances.
In a case where the EUR/USD prices remain firmer past 1.0300, the buyers can target July’s high near 1.0475.
Overall, EUR/USD remains on a bullish trajectory despite the recent pullback. It’s worth noting, however, that the upside momentum has limited room to the north.
EUR/USD: Four-hour chart
Trend: Pullback expected