September 27, 2022 01:47 AM ET
By: AnalysisWatch
EUR/USD is hitting another daily high around 0.9650, breaking a five-day downtrend as buyers hold the reins within a short-term triangle into Tuesday's European session. However, at press time, the major currency pair was already at 0.9660.
With MACD and RSI conditions favoring the price's recovery from the two-decade low, EUR/USD buyers are likely to overcome the immediate hurdle around 0.9660, including the upper line of the mentioned triangle.
However, a downward resistance line from September 20, located at 0.9710 at the latest, is the key to further progress in the pair.
If EUR/USD buyers maintain control above 0.9710, a move towards the 50% Fibonacci retracement level of the September 20-25 downtrend at 0.9810 is not out of the question.
Alternatively, pullback moves need to be confirmed from the round number 0.9600, which also includes the bottom of the mentioned triangle.
Following this, a downward movement towards a refresh of the multi-year low is more likely. In this case, the recent low at 0.9550 could be the next breather for the EUR/USD bears ahead of a six-month descending support line, which was at 0.9470 at the time of writing.