EURUSD bears appear running out of steam during the fourth weekly loss as it grinds near the key support confluence within a five-month-old bullish channel ahead of the US inflation. In doing so, the Euro pair seesaws between a three-week-old falling resistance line and a confluence of the 100-DMA and a rising support line from November 2022, respectively near 1.0970 and 1.0930. It’s worth noting that the MACD and RSI signal the return of the buyers but a clear downside break of 1.0930 could quickly challenge the bullish channel by poking the 1.0760 mark comprising the stated channel’s support line. In a case where the Euro bears ignore oscillators and break the 1.0760 support, May’s low of 1.0688 may act as an intermediate halt before dragging the quote toward the lows marked in February and January of 2023, close to 1.0515 and 1.0480 in that order.
On the flip side, a clear upside break of the aforementioned three-week-old descending resistance line, close to 1.0970 at the latest, becomes necessary for the EURUSD bull’s return. Following that, the tops marked in February and April, near 1.1035 and 1.1095 in that order will gain the market’s attention. In a case where the Euro buyers dominate past 1.1095, the yearly high marked in July around 1.1275 and the previously stated bullish channel’s top line, close to 1.1285, should lure the bids.
Overall, EURUSD is hitting strong support ahead of the key event that’s likely to underpin the US Dollar pullback, which in turn requires sellers to remain cautious before taking a fresh short position.
