EUR/USD Price Analysis: Euro bulls need acceptance from 1.0900 hurdle and Jackson Hole speeches
- EUR/USD picks up bids to extend recovery from six-week low.
- Bullish Doji candlestick, downbeat RSI (14) line favor Euro’s bottom-picking.
- Convergence of 100-EMA, one-month-old descending resistance line prods buyers ahead of top-tier data/events.
- EU/US PMIs, central bankers’ speeches at Jackson Hole also eyed for clear directions.
EUR/USD clings to mild gains around 1.0880 as it defends the week-start rebound from the lowest level in six weeks amid mixed concerns in the market. That said, the Euro pair’s latest recovery could be linked to the consolidation of the previous five-week downtrend, as well as positioning for the August month Purchasing Managers Indexes (PMIs) and the Kansas Fed’s annual event for central bankers, namely the Jackson Hole Symposium.
Also read: EUR/USD Weekly Forecast: US Dollar to keep strengthening
Technically, Friday’s Doji candlestick joins the nearly oversold RSI (14) line to trigger the corrective bounce in the EUR/USD price.
However, a convergence of the 100-day Exponential Moving Average (EMA) joins a downward-sloping resistance line from July 19 to highlight the 1.0900 level as a tough nut to crack for the Euro pair buyers.
Following that, a one-month-old descending trend line surrounding 1.0980 will act as the final defense of the EUR/USD bears.
On the contrary, a horizontal area comprising multiple levels marked since April 10, around 1.0840 at the latest, restricts the immediate downside of the EUR/USD pair.
A daily closing beneath 1.0840, however, isn’t an open invitation to the Euro bears as the 200-day EMA and an ascending trend line from mid-March, close to 1.0800 at the latest, could challenge the quote’s further downside.
Overall, EUR/USD remains on the bear’s radar despite the latest rebound. The pair’s downside room, however, appears limited.
EUR/USD: Daily chart
Trend: Limited recovery expected