Title: EUR/USD Price Analysis: Oversteps bearish channel to highlight 1.0100 hurdle
August 25, 2022 02:26 AM ET
EUR/USD renews its weekly high at 1.0175 by defying the eight-day-old bearish trend in the early hours of Thursday morning in Europe.
The upward break of the short-term downtrend channel is also confirmed by the bearish bias of the MACD signals and the recent rebound of the RSI (14).
Thus, buyers of the EUR/USD are on their way to a one-month horizontal resistance level near 1.0100.
However, the 21-DMA area near 1.0155 could challenge further upside in the major currency pair.
It should be noted, however, that sellers could hold the reins until the price stays below the monthly high near 1.0370.
On the other hand, pullbacks may need to break below the 0.9990 level to reverse the latest bullish break.
The recent multi-year low near 0.9900 could then divert bears away from EUR/USD.
However, the 61.8% Fibonacci expansion of the pair's May-August moves and the indicated channel support line near 0.9855 and 0.9815, respectively, could challenge the pair's further decline.
In the event that the EUR/USD seller remains in control after 0.9815, the 78.6% EF and a downward sloping support line from May, near 0.9700 and 0.9680 in that order, will be important to watch.