EUR/USD bulls take a breather around 1.0035, after refreshing the daily top to 1.0046, as cautious mood probes initial optimism during Wednesday’s European session.

It’s worth noting, however, that the quote’s successful upside break of the 50-SMA, backed by firmer RSI (14) and bullish signals from the MACD, keeps EUR/USD buyers hopeful.

With this, a convergence of the 100-SMA and area comprising multiple levels marked since late July, near 1.0100, appears a tough nut to crack for the bulls.

Even if the quote rises past 1.0100, the 200-SMA hurdle surrounding 1.0150 may act as an upside filter.

On the flip side, the 50-SMA level near 0.9985 could restrict the immediate downside of the EUR/USD.

Following that, the weekly support line near 0.9935 and the 0.9900 round figure could regain the bear’s attention.

Overall, EUR/USD bulls are in control ahead of crucial data points.

Despite the intraday advance, the daily chart for the EUR/USD pair shows that the risk remains skewed to the downside. The pair keeps developing below bearish moving averages, with the 20 SMA providing dynamic resistance at around 1.0120. The Momentum indicator turned south well below its midline, while the RSI indicator hovers around 40, reflecting bears are still in control of the pair.

The 4-hour chart hints at decreasing buying interest. The pair remains above a mildly bullish 20 SMA, which provided intraday support, although the longer moving averages stay well above the current level, with the 100 SMA gaining bearish traction. At the same time, the Momentum indicator turned south within neutral levels, while the RSI indicator is currently flat at around 54. The aforementioned 20 SMA stands at around 0.9980, the level to break to confirm a near-term bearish continuation.

Limited Hawkish Move Expected on EURUSD

Aug 31 2022

Stop Loss -0.46%

Holding time 2hr

1.00250

Entry price

0.99790

Stop loss price