Title:EUR/USD Price Analysis: Bulls gear up for a mark-up phase, 1.0097-1.0114 range a critical zone
September 12, 2022 01:50 AM ET
The EUR/USD pair was performing poorly during the Asian session as investors stayed on the sidelines ahead of the release of US inflation data. The asset is hovering in a narrow range of 1.0061-1.0104 and is expected to continue to move in this range. Last week, the major currency remained in the grip of the bulls after hitting a multi-year low below 0.9900.
On an hourly basis, the asset is hovering around the supply zone, located in a range of 1.0097 to 1.0114. A prolonged accumulation in the 0.9864-1.0097 area indicates a transfer of assets from retail participants to institutional investors. This also serves as a bullish reversal and translates into a sharp rise ahead. A breach of the accumulation phase results in a bullish phase ahead.
The 20- and 50-period exponential moving averages (EMAs) at 1.0066 and 1.0040, respectively, are rising, reinforcing the upward filters.
In addition, the Relative Strength Index (RSI) (14) is attempting to move into the bullish 60.00-80.00 zone, which will further strengthen the shared currency bulls.
A decisive break above the 1.0097-1.0114 supply zone will drive the asset toward the August 17 high at 1.0203, followed by the July 21 high at 1.0278.
Alternatively, the shared currency bulls will lose their grip if the asset falls below the August 26 low of 0.9947. In that case, the asset could continue to fall toward Monday's low at 0.9878 and round support at 0.9800.