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EUR/USD Gains Intraday Traction Yet Draws a Descending Channel

EUR/USD draws a descending channel and a narrow gauge, while appears bullish in the intraday and regains support from 50-day and 200-day MA. The positive movement of the currency prevails as the US stock futures are exposed to risk after Wall Street lost an essential profit in yesterday’s trading session. However, as the greenback appears weak, Euro regains its stand as the relaxations help in opening of the economy.

EUR/USD Price Chart

On the 8-hourly chart, Euro is drawing a descending and narrow its trading range with a consecutive lower high since the past month. However, as per the intraday momentum, if the pair successfully crosses above 1.10 for a persistent trade, it can breach the monthly strong resistance above 1.10. With a positive intraday move, the pair is retaining steady support.

Euro has retreated from the intraday low of 1.09018 and rose to 1.09760, yesterday, while currently trades at 1.0944. The pair has immediate support at 1.072 to watch out for if it breaches the lower range of the descending channel, which doesn’t look like a possibility in the short-term or the upcoming days as bullish crossover takes over.

The technicals also appear bullish, and the MACD is seen slightly crossing above the signal line and withholds a bullish divergence. Similarly, the RSI is at 64.21 and hits around the overbought zone.

Margaret Epling

Margaret Epling is a self-taught forex trader. She holds a master's degree in journalism. She loves to curate news stories of the financial world around the globe. She has a talent for writing technical analysis.

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