Bulls are well-set to poke 1.0955 hurdle

  • EUR/USD renews nine-month high inside short-term rising wedge.
  • Nearly overbought RSI conditions suggest limited room towards the north.
  • 10-DMA restricts immediate downside, 1.0660 is the key support.

EUR/USD makes round to 1.0900 after rising to a fresh high since April 2022 heading into Monday’s European session.

In doing so, the Euro pair prints a three-day winning streak while staying firmer beyond the 10-DMA. However, the nearly overbought RSI and a 4.5-month-old rising wedge bearish chart formation challenges the buyers as of late.

It’s worth noting that the quote’s latest run-up aims for the April 2022 peak surrounding 1.0935 ahead of targeting the stated wedge’s top-line close to 1.0955.

Though, a successful run-up beyond 1.0955 will defy the bearish pattern and could quickly propel the prices toward the 1.1000 round figure.

In a case where the EUR/USD pair remains firmer past 1.1000, March 2022 peak surrounding 1.1185 will be in focus.

Alternatively, pullback moves remain elusive unless the quote stays above the 10-DMA support of 1.0815.

Following that, the 61.8% Fibonacci retracement level of the EUR/USD pair’s February-September 2022 downturn, around 1.0750, could lure the bears.

It should be observed that the EUR/USD’s weakness past 1.0750 highlights the stated wedge’s lower line, close to 1.0660, a break of which will confirm the bearish chart formation and can reverse the upward trajectory since late September 2022.

EUR/USD: Daily chart

Trend: Limited upside expected


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