Title: EUR/USD Price analysis: Further upside hinges on 1.0200 breakout

August 4, 2022 01:46 AM ET

By: AnalysisWatch

The EUR/USD is treading water as markets remain cautious ahead of important data or events. Key events include the European Central Bank (ECB) monthly economic report on Thursday and the US nonfarm payrolls (NFP) data on Friday. Nevertheless, the main currency pair was fluctuating around 1.0180 at the beginning of the European session on Thursday.

The recent recovery of the quote is confirmed by the bullish MACD signals and the Doji candle from Wednesday. The 21-DMA is also supporting the EUR/USD upside.

A convergence of the 10-DMA and the previous support line from July 14 around 1.0200 will be a significant impediment to EUR/USD buyers regaining control.

Nevertheless, a downward resistance line from early June at 1.0250 at press time could challenge the pair's further advance.

Alternatively, the 21-DMA support level of 1.0157 limits the immediate support ahead of the 1.0100 level, the break of which could quickly lead the EUR/USD bears back towards the yearly low at 0.9950.

It is worth noting that the parity level at 1.0000 will act as an intermediate stop during the pair's downward movement beyond 1.0100.