Marches toward 1.0500 as bulls defend 1.0380, a crucial support

  • EUR/USD has displayed a responsive buying action around 1.0382.
  • The RSI (14) is attempting to breach 60.00 which will bring a fresh impulsive wave.
  • The trendline placed from June 17 low a 1.0444 will act as a critical hurdle for the counter.

The EUR/USD pair is facing a time correction after hitting a high of 1.0489 on Thursday. The asset displayed a firmer responsive buying action after hitting a low of 1.0382. A responsive buying action indicates the initiation of significant longs by the market participants after they consider the asset a value bet.

The shared currency bulls have defended the critical support of 1.0382, recorded on June 16 comfortably, which has resulted in a firmer bullish reversal in the counter. The upward sloping trendline placed from June 17 low a 1.0444 will act as a critical hurdle for the counter.

The asset has crossed the 20- and 50-period Exponential Moving Averages (EMAs) at 1.0465 and 1.0473 respectively. It is worth noting that the asset’s price is auctioning above the short-term EMAs while the 20-EMA is trading lower than the 50-EMA. This indicates that the buying action in the asset is very much firmer.

Meanwhile, the Relative Strength Index (RSI) (14) is attempting to cross the 60.00 mark to confirm a fresh leg of the rally. An occurrence of the same will expose the asset to more upside. A firmer range shift by the RSI (14) signifies that the asset is no more bearish now.

A determining move above June 23 low at 1.0483 will drive the asset towards Wednesday’s high at 1.0535, followed by Tuesday’s high at 1.0606.

On the flip side, the greenback bulls could strengthen further if the asset drops below Thursday’s low at 1.0433. An occurrence of the same will drag the asset towards June 14 low at 1.0397. A slippage below June 14 low will expose the asset to more downside levels of the Jun 15 low at 1.0359.

EUR/USD hourly chart

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