EUR/USD Price Analysis: Euro bulls need validation from 1.1015 and EU-US inflation clues
- EUR/USD picks up bids to prod three-week high as US inflation expectations contrast with ECB official’s hawkish remarks.
- Sustained upside break of two-month-old previous resistance, upbeat oscillators favor Euro bulls to cross 1.1015 hurdle.
- Bears remain off the table unless witnessing downside break of ascending trend line from March.
EUR/USD bulls print a three-week high near 1.1015 during a four-day winning streak amid early Tuesday in Asia, extending the previous day’s upside break of the key resistance line towards pushing the Euro buyers toward another key upside hurdle.
In doing so, the EUR/USD pair justifies the previous day’s upside break of the two-month-old descending resistance line, now immediate support near 1.0980.
Adding strength to the bullish bias are the bullish MACD signals and the upbeat RSI (14) line, not overbought.
However, the previous monthly high of around 1.1015 prods the EUR/USD bulls as traders await the second-tier Eurozone sentiment figures, as well as the US inflation data.
Also read: EUR/USD: Euro bulls attack 1.1010 hurdle as US Dollar slides on downbeat inflation expectations
Even if the EUR/USD manages to remain firmer past 1.1015, the yearly high marked in May around 1.1100 will challenge the Euro buyers before giving them an extra boost.
On the contrary, a downside break of the resistance-turned-support line of around 1.0980 can trigger a short-term pullback in the EUR/USD price. However, the bears remain off the table unless witnessing a daily closing below the 100-DMA, around 1.0835 by the press time.
Even so, an upward-sloping support line from March, close to 1.0730 at the latest, will challenge the EUR/USD bears before giving them control.
EUR/USD: Daily chart
Trend: Further upside expected