#EURUSD @ 1.06990 remains sidelined within trend continuation chart pattern., @nehcap view: Recovery expected (Pivot Orderbook analysis)

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• EUR/USD remains sidelined within trend continuation chart pattern.
• Sustained trading beyond five-month-old ascending support line lures Euro buyers.
• Looming bull cross on MACD, nearly oversold RSI signal EUR/USD’s further upside.
• Pennant’s top line, 100-DMA challenge Euro bulls before giving control.

The pair currently trades last at 1.06990.

The previous day high was 1.0733 while the previous day low was 1.0667. The daily 38.2% Fib levels comes at 1.0692, expected to provide support. Similarly, the daily 61.8% fib level is at 1.0708, expected to provide resistance.

EUR/USD steadies within a one-week-old Pennant formation, near 1.0700 by the press time of early Thursday in Asia, as bulls and bears jostle amid fears of economic slowdown, higher rates and softer Eurozone data.

Also read: Gold Price Forecast: XAU/USD bears ignore sluggish USD on mixed growth concerns, hawkish central banks

That said, the Euro pair’s rebound from a five-month-old ascending support line joins the recently downbeat RSI (14) line, as well as an impending bull cross on the MACD, to keep the EUR/USD buyers hopeful.

However, a clear upside break of the stated Pennant’s top line, currently around 1.0730, becomes necessary for the EUR/USD pair buyers to retake control.

Even so, the 100-DMA hurdle of around 1.0810 can check the upside momentum ahead of directing the Euro price towards the mid-May swing high of near 1.0910.

On a different page, the stated Pennant’s bottom line, close to 1.0670 by the press time, restricts the short-term downside of the EUR/USD, a break of which will drag the Euro pair to an upward-sloping support line from early January, near 1.0640.

It’s worth noting that the previous monthly low of around 1.0635 acts as an extra check for the EUR/USD bears, past 1.0640, before directing them to the lows marked in March and January, respectively near 1.0515 and 1.0480 in that order.

Trend: Recovery expected

Technical Levels: Supports and Resistances

EURUSD currently trading at 1.0701 at the time of writing. Pair opened at 1.0693 and is trading with a change of 0.07% % .

The pair is trading below its 20 Daily moving average @ 1.0784, below its 50 Daily moving average @ 1.0892 , below its 100 Daily moving average @ 1.0811 and above its 200 Daily moving average @ 1.0509

The previous day high was 1.0733 while the previous day low was 1.0667. The daily 38.2% Fib levels comes at 1.0692, expected to provide support. Similarly, the daily 61.8% fib level is at 1.0708, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.0662, 1.0632, 1.0596
• Pivot resistance is noted at 1.0728, 1.0763, 1.0794

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