#EURUSD @ 1.00261 Current view: Limited upside expected, Check trading levels

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• EUR/USD retreats from intraday high during three-day uptrend.
• Firmer oscillators, a clear break of 50-SMA favor buyers.
• 100-SMA, one-month-old horizontal area challenge further upside.
• Preliminary readings of EU inflation, US ADP Employment Change in focus.

The pair currently trades last at 1.00261.

The previous day high was 1.0055 while the previous day low was 0.9982. The daily 38.2% Fib levels comes at 1.0027, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.001, expected to provide support.

EUR/USD bulls take a breather around 1.0035, after refreshing the daily top to 1.0046, as cautious mood probes initial optimism during Wednesday’s European session.

That said, the major currency pair’s recent pullback could be linked to the anxiety ahead of flash/preliminary readings of the Eurozone HICP for August, expected at 9.0% versus 8.9% prior. Following that, the US ADP Employment Change for August, the early signal for Friday’s Nonfarm Payrolls (NFP), expected 200K versus 128K prior, will also be important to watch for fresh impulse.

Also read: EUR/USD stays defensive above 1.0000 despite hawkish ECBspeak ahead of EU inflation

It’s worth noting, however, that the quote’s successful upside break of the 50-SMA, backed by firmer RSI (14) and bullish signals from the MACD, keeps EUR/USD buyers hopeful.

With this, a convergence of the 100-SMA and area comprising multiple levels marked since late July, near 1.0100, appears a tough nut to crack for the bulls.

Even if the quote rises past 1.0100, the 200-SMA hurdle surrounding 1.0150 may act as an upside filter.

On the flip side, the 50-SMA level near 0.9985 could restrict the immediate downside of the EUR/USD.

Following that, the weekly support line near 0.9935 and the 0.9900 round figure could regain the bear’s attention.

Overall, EUR/USD bulls are in control ahead of crucial data points.

Trend: Limited upside expected

Technical Levels: Supports and Resistances

EURUSD currently trading at 1.0031 at the time of writing. Pair opened at 1.0015 and is trading with a change of 0.16% % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 1.0117, 50 SMA 1.0206, 100 SMA @ 1.0414 and 200 SMA @ 1.0815.

The previous day high was 1.0055 while the previous day low was 0.9982. The daily 38.2% Fib levels comes at 1.0027, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.001, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.998, 0.9944, 0.9907
• Pivot resistance is noted at 1.0052, 1.009, 1.0125

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