Bulls on the EUR/USD pushed through the 100-DMA barrier early on Thursday while posting modest gains near a two-week high. In doing so, the euro-dollar pair supports the generally depressed US Dollar amid the Fed’s dovish attitude ahead of crucial inflation data from the US and the Eurozone. Despite this, as of the time of publication, the Euro pair had reached a fresh intraday high of 1.0932.

Also read: Eurozone, inflation data expected to support Fed and ECB actions push EUR/USD over 1.0900

Together with the aforementioned fundamental drivers, the strongest bullish MACD signal in six weeks enables the EUR/USD pair to move past the 100-DMA barrier near 1.0930 and head for the 50-DMA resistance at 1.0972. The psychological support level of 1.1000 and the June high of 1.1012, however, would then pose a challenge to the EUR/USD bulls.

It is possible that the major currency pair, which was previously in conflict with the 1.1100 level in April and May, will continue to trade firmer after 1.1012.
A downside violation of the prior resistance line, which was extended on July 18 and is now an immediate support level around 1.0880, can also bring back the EUR/USD sellers.
But after that, the 200-DMA and an inclining support line from early January, located near 1.0815 and 1.0730, respectively, will be significant obstacles for the pair to overcome.

KEY POINTS

  • The EUR/USD exchange rate is still in the lead at its highest point in 12 days.
  • Bullish MACD indications and a clear upside break of the six-week-old falling trend line kept purchasers of the euro optimistic.
  • Prior to the Eurozone HICP, CPI, and US Core PCE Price Index, the Fed’s dovish stance also gave pair buyers hope.
  • While 200-DMA serves as an extra negative filter, 50-DMA draws in Euro bulls.

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