EUR/USD Price Analysis: Pullback remains elusive beyond 1.0710 support
- EUR/USD retreats from intraday high as bulls take a breather ahead of the key US CPI.
- 50-HMA, two-week-old horizontal support restrict short-term downside.
- Firmer RSI (14) signals limited acceptance to bearish bias.
EUR/USD depicts the market’s cautious mood heading into Thursday’s European session as it eases from an intraday high to 1.0760 by the press time. Even so, the major currency pair remains firmer for the fifth consecutive day as traders await the US Consumer Price Index (CPI) data for December.
That said, the quote’s latest pullback could be linked to its inability in crossing the fortnight-long ascending resistance line, around 1.0780 by the press time.
The lower highs on the RSI (14) also favor the recent pullback in the EUR/USD. However, the momentum indicators remain well above the 50 mark and suggest limited favor to the heavy downside.
Against this backdrop, the EUR/USD sellers approach the 50-HMA support surrounding 1.0745. Though, the quote’s weakness past 1.0745 remains limited as multiple levels marked since December 30 restrict the quote’s further downside around 1.0710.
In a case where EUR/USD breaks the 1.0710 support, a quick drop toward the tops marked late last week, near 1.0635 appears more likely.
Meanwhile, recovery moves need to cross the aforementioned ascending resistance line, close to 1.0780, to restore the bullish bias. Even so, the high marked during May 2022 and the March 2022 low, respectively near 1.0785 and 1.0805, could challenge the EUR/USD buyers.
Following that, a run-up towards the 1.1000 psychological magnet can’t be ruled out.
EUR/USD: Hourly chart
Trend: Bullish