EURUSD remains firmer inside a fortnight old bullish channel ahead of the Fed’s preferred gauge of inflation, also staying beyond the key SMAs. Currently, the channel’s upper line surrounding 1.0800 lures the pair buyers, a break of which will direct them towards the 78.6% Fibonacci retracement (Fibo.) of April 21 to May 13 fall, near 1.0820. It’s worth noting that the RSI is speedily approaching the overbought territory and hence the run-up beyond 1.0820 appears difficult. However, a successful rise past 1.0820 won’t hesitate to challenge the latest peak close to 1.0935 with eyes on the 1.1000 psychological magnet.
Meanwhile, pullback moves remain elusive unless breaking the 1.0640 support confluence, including 200-SMA and support line of the stated channel, also comprising the early May swing high. In a case where EURUSD drops below 1.0640, the 100-SMA level near 1.0550 will test the pair sellers, a break of which will allow them to revisit the monthly low of 1.0348.
To sum up, EURUSD remains on the bull’s radar ahead of the key inflation data but the upside room is limited and hence buyers need strong numbers to dominate further.