The EURUSD currency pair at a rate of 1.08868 is experiencing an increase in demand, reaching a new high for the day after rebounding from a low point seen in the past six weeks. The viewpoint of Nehcap suggests that a temporary decline in the currency pair is anticipated.

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• EUR/USD picks up bids to refresh intraday high, bounces off six-week low.

The pair currently trades last at 1.08868.

The previous day high was 1.0918 while the previous day low was 1.0856. The daily 38.2% Fib levels comes at 1.088, expected to provide support. Similarly, the daily 61.8% fib level is at 1.0895, expected to provide resistance.

EUR/USD consolidates weekly losses by bouncing off a 1.5-month low to print the first daily gain in three. In doing so, the Euro pair benefits from the US Dollar’s retreat, amid a pullback in the Treasury bond yields, during the early hours of Friday. It’s worth noting a rebound in the RSI (14) line from the nearly oversold conditions also underpins the major currency pair’s latest rebound.

Even so, comparatively better US data and the looming recession risk for Germany join the sour sentiment to keep the Euro buyers in check ahead of the second-tier Eurozone data/events. Among them, the final readings of Eurozone inflation for July and a speech from the European Central Bank (ECB) Chief Economist Philip Lane will be crucial to follow.

Technically, a convergence of the 100-day Exponential Moving Average (EMA) joins a downward-sloping trend line from July 18 to highlight the 1.0910 as a strong upside hurdle for the EUR/USD bulls to cross to retake control. Additionally, the bearish MACD signals also challenge the Euro pair’s upside hopes.

In a case where the EUR/USD manages to cross the 1.0910 resistance confluence, the odds of witnessing a rally towards the 1.1000 psychological magnet and then to June’s top surrounding 1.1015 can’t be ruled out.

On the flip side, a four-month-old horizontal support zone near 1.0840-35 appears an immediate challenge for the EUR/USD sellers.

Following that, a convergence of the 200-day EMA and an upward-sloping trend line from March, close to 1.0800 at the latest, will be a tough nut to crack for the EUR/USD bears.

Trend: Pullback expected

Technical Levels: Supports and Resistances

EURUSD currently trading at 1.089 at the time of writing. Pair opened at 1.0872 and is trading with a change of 0.17% % .

The pair is trading below its 20 Daily moving average @ 1.0981, below its 50 Daily moving average @ 1.0975 , below its 100 Daily moving average @ 1.0931 and above its 200 Daily moving average @ 1.0789

The previous day high was 1.0918 while the previous day low was 1.0856. The daily 38.2% Fib levels comes at 1.088, expected to provide support. Similarly, the daily 61.8% fib level is at 1.0895, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.0846, 1.0821, 1.0785
• Pivot resistance is noted at 1.0908, 1.0944, 1.097

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