- EURUSD picks up bids to refresh intraday high, reversing Wednesday’s losses.
- Two-month-old horizontal resistance area challenge bulls.
- Previous support line from Monday, bearish MACD signals restrict immediate upside.
- Sellers need validation from six-week-old support line to refresh yearly low.
EURUSD braces for the fourth weekly uptrend as it refreshes the intraday high near 1.0035 during the early Thursday morning in Europe. In doing so, the major currency pair seesaws around the key hurdle to the north while flashing signals that the buyers are running out of steam.
That said, the quote’s latest rebound parted ways from the bearish MACD signals while rising towards the four-day-old support-turned-resistance line near 1.0065.
Even if the EURUSD buyers manage to cross 1.0065, a horizontal area comprising multiple levels marked since early September, between 1.0100 and 1.0110, could challenge the further upside.
It’s worth noting that the RSI (14) is near the overbought conditions and hence suggests further upside room, which in turn highlights the 1.0100-10 zone as the key resistance.
Should the EURUSD prices rally beyond 1.0110, a quick upside towards the September month’s peak of 1.0200 can’t be ruled out.
Alternatively, pullback moves could aim for the early October’s swing high near the parity before directing the bears towards the 61.8% Fibonacci retracement of September 12-28 downside, around 0.9945.
Even so, the EURUSD sellers remain unconvinced before marking a clear break of an upward-sloping support line from September 28, close to 0.9770 at the latest.
EURUSD: Four-hour chart
Trend: Limited upside expected