#EURUSD @ 1.07318 extends the previous day’s rebound from five-week low, grinds higher of late., @nehcap view: Further upside expected (Pivot Orderbook analysis)

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• EUR/USD extends the previous day’s rebound from five-week low, grinds higher of late.
• Sustained break of descending triangle, upbeat oscillators favor buyers to target 200-SMA.
• Sellers need validation from 1.0650 to retake control.

The pair currently trades last at 1.07318.

The previous day high was 1.073 while the previous day low was 1.0656. The daily 38.2% Fib levels comes at 1.0702, expected to provide support. Similarly, the daily 61.8% fib level is at 1.0684, expected to provide support.

EUR/USD grinds near the intraday high of 1.0736 while stretching the week-start rebound from the multi-day low to early Tuesday. In doing so, the major currency pair justifies the previous day’s upside break of a two-week-old descending triangle.

Adding strength to the upside bias are the bullish MACD signals and the firmer RSI (14), not overbought.

With this, the EUR/USD buyers are on the way to the 200-bar Simple Moving Average (SMA), around 1.0780 by the press time. However, multiple hurdles could challenge the pair’s further upside near 1.0800 and 1.0870 afterward.

In a case where the EUR/USD pair remains firmer past 1.0870, a three-week-old horizontal resistance area near 1.0930-40 will be crucial for the buyers to cross if they wish to keep the reins.

On the flip side, the pullback moves remain elusive unless the quote stays beyond the stated triangle’s top line, near 1.0680 at the latest.

Even if the EUR/USD pair declines below 1.0680, the lower line of the triangle, close to 1.0650, could act as the last defense of the buyers.

Overall, EUR/USD is likely to remain firmer as crucial statistics from the Eurozone and the US loom. However, the upside room appears limited.

Also read: EUR/USD grinds higher past 1.0700 as traders brace for EU Q4 GDP, US inflation

Trend: Further upside expected

Technical Levels: Supports and Resistances

EURUSD currently trading at 1.0732 at the time of writing. Pair opened at 1.0723 and is trading with a change of 0.08% % .

The pair is trading below its 20 Daily moving average @ 1.082, above its 50 Daily moving average @ 1.0711 , above its 100 Daily moving average @ 1.0374 and above its 200 Daily moving average @ 1.0324

The previous day high was 1.073 while the previous day low was 1.0656. The daily 38.2% Fib levels comes at 1.0702, expected to provide support. Similarly, the daily 61.8% fib level is at 1.0684, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.0676, 1.0628, 1.0601
• Pivot resistance is noted at 1.075, 1.0777, 1.0825

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