#EURUSD @ 1.04087 remains sidelined after posting the biggest daily gains in over a week., @nehcap view: Limited upside expected (Pivot Orderbook analysis)

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• EUR/USD remains sidelined after posting the biggest daily gains in over a week.
• Bulls eye ascending resistance line from August on closing break of 200-DMA.
• 61.8% Fibonacci retracement level adds to the downside filters.
• MACD, RSI challenge bullish bias but bears have a long way to go before taking control.

The pair currently trades last at 1.04087.

The previous day high was 1.0394 while the previous day low was 1.032. The daily 38.2% Fib levels comes at 1.0349, expected to provide support. Similarly, the daily 61.8% fib level is at 1.0366, expected to provide support.

EUR/USD bulls take a breather around 1.0400 during early Thursday, following the heavy run-up before a few hours, as traders await fresh clues to extend Fed Chair Jerome Powell-led gains. Also likely to have challenged the pair buyers are the signals from the Moving Average Convergence and Divergence (MACD) indicator and the Relative Strength Index (RSI) line, placed at 14.

Even so, the major currency pair’s sustained closing beyond the 200-DMA, around 1.0370 by the press time, keeps the buyers hopeful. On the same line could be the quote’s successful rebound from the 61.8% Fibonacci retracement level of June-September downside, close to 1.0300.

With this, the EUR/USD bulls keep their eyes on an upward-sloping resistance line from August 10, near 1.0500 at the latest, before targeting the late June swing high around 1.0615 and June’s peak surrounding 1.0775.

It should be noted that the impending bear cross on the MACD and the RSI’s nearness to the overbought territory suggests limited upside room for the quote.

However, the EUR/USD sellers may not risk entries until witnessing a clear break of the 61.8% Fibonacci retracement level, also known as the golden ratio, currently around 1.0300. That said, the 200-DMA level near 1.0370 restricts the immediate downside of the pair.

Should the quote drops below 1.0300, the previous weekly low near 1.0220 and September’s peak near 1.0200 could challenge the EUR/USD bears.

Trend: Limited upside expected

Technical Levels: Supports and Resistances

EURUSD currently trading at 1.0408 at the time of writing. Pair opened at 1.0326 and is trading with a change of 0.79% % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.0219, 50 SMA 0.9977, 100 SMA @ 1.0037 and 200 SMA @ 1.0379.

The previous day high was 1.0394 while the previous day low was 1.032. The daily 38.2% Fib levels comes at 1.0349, expected to provide support. Similarly, the daily 61.8% fib level is at 1.0366, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.0299, 1.0272, 1.0224
• Pivot resistance is noted at 1.0373, 1.0421, 1.0448

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