Title: EUR/USD Price Analysis: Further upside hinges on 21-day EMA breakout

July 28, 2022 01:33 AM ET

By: AnalysisWatch

EUR/USD is fluctuating within the important EMA envelope, bumping 1.0200 at the start of the European session on Thursday. The 21-day EMA is limiting the currency pair's immediate upside potential, while the 10-day EMA is limiting the bears' entry.

However, the successful breach of the two-week horizontal support combined with the bullish MACD signals gives hope to the buyers.

For the bulls, however, a clear upside break of the 21-day EMA around 1.0230 seems to be required.

Following that, a seven-week resistance line, at 1.0310 at the latest, will challenge the EUR/USD bulls before giving them control.

Alternatively, the 10-day EMA at 1.0185 ahead of the aforementioned horizontal area at 1.0120 may also limit the short-term downtrend of the EUR/USD pair.

Also acting as a downward filter are the 1.0100 threshold and the 1.0000 level, known as the parity level.

If the EUR/USD pair continues to decline beyond the 1.000 level, the recent low at 0.9950 and the December 2002 low at 0.9860 will come into focus.