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EUR/USD Price Analysis: Moves higher past the 1.0710 level of support
EUR/USD gains bids to reverse the previous day's retreat within the weekly rectangle pattern. A short-term ascending trend line and bull cross keep buyers optimistic despite a strengthening RSI. The late-December peak bolsters the downside filters.
During Wednesday's lethargic mid-Asian session, EUR/USD re-establishes its intraday high at 1.0750, extending the day-start recovery. Consequently, the major currency pair exhibits modest gains within a three-day-old rectangle pattern.
The buyers remain optimistic despite the pair's impressive comeback from the weekly support line and stronger RSI (14) levels. The crossing of the 100-HMA below the 200-HMA, often known as a bull cross, bolsters the upside bias.
As a result, the EUR/USD pair is anticipated to surpass the immediate barrier at 1.0760, which could accelerate prices towards the May 2022 peak near 1.0785. Nonetheless, the 1.0800 round number and the expected overbought RSI (14) conditions at that level could pose a threat to pair buyers in the future.
Should the EUR/USD price continue higher than 1.0800, the March 2022 low near 1.0810 might serve as the last line of defense for selling before the psychological 1.1000 level becomes the focal point for bulls.
On the other hand, an upward-sloping support line from Monday, which was at 1.0735 at the time of writing, prevents immediate EUR/USD fall ahead of the stated rectangle's bottom near 1.0710. Nevertheless, the late-December highs lend impetus to the 1.0710 support level.
Even if the price falls below 1.0710, the 100-HMA and 200-HMA may resist the pair's continued decline around 1.0645-40.
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