EUR/USD Price Analysis: Bulls poke 1.0230 hurdle ahead of key EU/US inflation data
- EUR/USD bulls attack 21-day EMA for the eighth time but MACD, RSI hints at gradual firming of upside momentum.
- Seven-week-old descending trend line adds to the upside filters.
- Fortnight-old horizontal support restricts immediate downside.
- Flash readings of Eurozone CPI, US PCE Price Index for July will be crucial to watch.
EUR/USD buyers jostle with the 21-day EMA amid broad US dollar weakness during early Friday morning in Europe. In addition to the key moving average, the cautious sentiment ahead of the Eurozone Consumer Price Index (CPI) and the US Core Personal Consumption Expenditure (PCE) Price Index, also challenge the pair’s upside around 1.0230 resistance.
Also read: EUR/USD retreats from 1.0200, Eurozone GDP, CPI and Fed's preferred inflation in focus
It’s worth noting, however, that the recently firmer RSI (14), not oversold, joins the MACD’s bullish signals to back the price recovery, which in turn keeps bulls hopeful.
That said, the quote’s upside break of 1.0230 could direct the buyers towards a downward sloping resistance line from early June, near 1.0310.
Following that, an area comprising multiple levels marked since May, near 1.0380, will be crucial to watch for the EUR/USD buyers.
On the flip side, a fortnight-long horizontal support zone, near 1.0115-25, limits the pair’s immediate downside ahead of the 61.8% Fibonacci Expansion (FE) of March-March moves close to 0.9950.
It should be observed that the 1.0000 parity level and the December 2002 low near 0.9860 are filters to the south.
EUR/USD: Daily chart
Trend: Further upside expected