EUR/USD Price Analysis: Euro recovery needs acceptance from 1.0720 and ECB vs. Fed concerns
- EUR/USD picks up bids to refresh intraday high, bounces off weekly low.
- Upbeat RSI, MACD signals joins sustained rebound from weekly triangle’s support to favor Euro bulls.
- Convergence of 200-HMA, 100-HMA and triangle’s top line checks EUR/USD bulls before giving them control.
EUR/USD bulls attack the 1.0700 threshold while refreshing the intraday high early Wednesday. In doing so, the Euro pair reverses the previous day’s losses within a one-week-old symmetrical triangle.
It’s worth noting that the bullish MACD signals and upbeat RSI (14) line, not overbought, back the Euro pair’s rebound from the stated triangle’s support line, suggesting further advances in the price.
Furthermore, the latest divergence between the interest rate bets on the European Central Bank (ECB) and the Federal Reserve (Fed) also lure the EUR/USD buyers.
Also read: EUR/USD replicates sluggish markets around 1.0700 amid challenges for ECB hawks, Fed blackout
However, the 200-Hour Moving Average (HMA), 100-HMA and the aforementioned triangle’s top line together highlight the 1.0720 level as a tough nut to crack for the EUR/USD bulls.
Should the major currency pair manages to remain firmer past 1.0720, the odds of witnessing a quick jump toward Friday’s high of around 1.0780 can’t be ruled out.
Following that, the 1.0800 may act as a buffer during the EUR/USD pair’s likely run-up towards the mid-May peak surrounding 1.0910.
Alternatively, EUR/USD pullback remains elusive unless the quote stays beyond the bottom of the short-term triangle, close to 1.0665 by the press time.
In a case where the Euro pair remains bearish past 1.0665, May’s low of 1.0635 can act as the last defense of the buyers before highlighting the troughs of March and January, 1.0515 and 1.0480, as the key supports.
EUR/USD: Hourly chart
Trend: Further upside expected