Wednesday, May 31, 2023
HomeUncategorizedEUR/USD Price Analysis: Rally nears two-week mark near 1.0040

EUR/USD Price Analysis: Rally nears two-week mark near 1.0040

  • EUR/USD remains firm for the third day in a row as buyers attack a key short-term resistance line.
  • An impending bullish crossover of the MACD and a sustained breakout of the 10-DMA also favor the upside momentum.
  • The 50-DMA has seen key resistance and the bears can regain control by breaking out of the July low.

EUR/USD rose during Wednesday’s Asian session Gains extended to 1.0025. In doing so, the major pair formed a three-day uptrend while justifying a close above the 10-day EMA for the first time since Aug. 15.

However, at press time, a two-week-old downtrend line (around 1.0040) protects an immediate recovery in quotes. After that, a rise towards the 1.0100 threshold cannot be ruled out.

Even so, EUR/USD bulls need a successful close above the 50-DMA mark near 1.0195 to regain control.

That said, the imminent bullish crossover of the MACD and stabilization of the RSI seems to favor the short-term upside of quotes.

Also, after support near the 10-day SMA, the pullback remains elusive at the parity level of 1.0000. After this, the July bottom around 0.9950 could attract bears before leading it to the recently flashed 19-year low 0.9900. In general, EUR/USD is bullish on the day, but downside risks cannot be ignored ALSO READ: EUR/USD remains defensive above 1.0000 despite ECB hawkish remarks ahead of EU EUR/USD: Daily Chart Trend: Limited upside expected

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