August 30, 2022 02:11 AM ET
By: AnalysisWatch
Buyers of the EUR/USD pair struggled to sustain the early-week rebound in Tuesday's European session. In doing so, the major currency pair is bumping up against the 200-HMA and the upper line of the nearby descending triangle bullish chart pattern.
However, it is worth noting that the RSI (14) remains on the sidelines and the MACD is issuing bearish signals that challenge the bullish momentum. Despite this, the quote's abstention from dropping below the 0.9980 support gives hope to intraday buyers.
That said, the intraday rise needs to be validated by the confluence of 1.0005 resistance, including the aforementioned HMA and the upper triangle line.
Nevertheless, a downward sloping resistance line since August 17, which was near 1.0050 at press time, could test EUR/USD buyers. The 61.8% Fibonacci retracement level of the Aug. 17-23 drop, near 1.0090, is also an obstacle to the upside.
Alternatively, a clear downward break of the indicated triangle support line, near 0.9980 at the latest, could recall sellers of the pair. Thereafter, a move south towards the 0.9900 level cannot be ruled out.
In the event that EUR/USD remains bearish beyond 0.9900, the lows marked in September and October 2002, near 0.9685 and 0.9610, respectively, could attract sellers of the pair.
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